When you are considering getting into investments, always remember that “Cash flow is King.” What exactly is cash flow? It’s when you are making money without you physically needing to work for it. Who doesn’t want more of that, right?
There are 4 basic asset classes to consider when investing: real estate, business, stocks, and commodities. Three of the four can bring cashflow or passive income.
The Real Estate “Work Hard” Approach
Flipping houses looks much easier on TV. Many TV show celebrities have made their fortunes creating shows demonstrating how to buy a property, fixed it up and sell it at a considerable profit. Many new investors who consider getting into real estate start by purchasing an ugly house, try to fix it up and resell it. Often, without a profit. Unlike the magic of TV editing, flipping properties is NOT the easiest way to get started in real estate investing for most. It is a “work hard” strategy. I’ve seen it time & time again. It always takes longer than you anticipate and it always goes over budget. It’s a massive drain on all your monies & it steals valuable time from you and your family. So, for me and my recommendations, I don’t like to deal with “ugly” houses. They are too much risk to me.
The Real Estate “Work Smarter” Approach
Instead, I encourage you to buy and hold properties for cash flow or passive income. This is a “work smarter” approach. Buying a property to create passive income gives you, the investor, income every month. Besides, the property provides a significant tax advantage over time. More importantly, the asset has the opportunity to appreciate while you own it. The appreciating value, known as equity, is a value you can use later. As the value increases, you can use the equity to buy more properties. It’s a slam dunk! Real estate is my favorite way to create cash flow!
Business Venture to Increase Cash Flow
You can also consider getting into business to increase your cash flow. Unfortunately, the downfall to this is most small business owners find themselves trapped in the day to day operations of the company. It becomes difficult to scale the trade so the business can continue to function and be profitable without them. Always remember to invest in a business that doesn’t suck you into its operations. It should increase your cash flow without devouring your time.
Stocks Can Increase Your Cash Flow
Stocks are another avenue to consider when you want to increase your cash flow. The key with stocks is to buy right! Novice investors make the mistake of buying a stock and hoping it goes up in value. However, experienced investors consider the stock’s trending and the overall market cycles. When dealing with stocks, you must remember that you have no control over the stock company’s decisions. And, a mentor of mine once said to me “When you are not in control of your finances, you are at the highest risk.”
How Will You Create Your Financial Freedom?
What does financial freedom look like to you? For me, I want to be able to do what I want, when I want, with whom I want without thinking about the costs. But, how did I get to this point in my life? I focused on creating multiple streams of income across all asset classes.
At the Wealth Attraction Academy, we help you discover the pitfalls that may be holding you back from reaching your financial dreams. The first step is to take the risk assessment where you’ll get to determine your risk tolerance for investments and your mindset limitations. Moreover, you’ll get 50 minutes of one-on-one time with me to assess your results. Once we know where your boundaries lie, I can help you overcome what is holding you back and create a plan to move you forward in living the life of your dreams.