You have probably heard the saying “Cash is king”…
It’s got a nice ring to it, right?
It’s catchy, sounds good, and was probably told to you by a wise uncle during a family dinner at some point in your life.
The trouble is it’s wrong.
Cash isn’t king…
Cash flow is king!
This fundamental mistake is one I’ve seen countless people make when putting together their financial plan.
You should think of your financial plan like a puzzle. You’ve got to put the pieces together correctly to create the picture on the front of the box, and in this case the picture is your cash flow.
It’s what allows you to fund your lifestyle while continuing to develop new income sources.
It’s the end goal that you’re planning for and working towards. Cash flow is what makes everything possible.
Building a plan based on cash flow isn’t hard if you follow a few basic steps. In today’s podcast I show you:
- How to break down your annual expenses into five basic categories,
- Why your budget is NOT your cash flow picture and what you need to do instead,
- Why you need to ditch the scarcity mindset and adopt a perspective of abundance to put your cash flow plan into motion,
- A simple exercise to find out if your cash flow is in alignment with your plans.
If you want your wealth to grow, cash flow is king!
“The podcasts posted here before July 1, 2022 are historical in nature and were previously approved by Kalos Management, LLC. The views and statistics discussed in these shows are relevant to that time period and may not be relevant to current events. This is intended for informational and entertainment purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. Our firm is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the US Government or any governmental agency. The information and opinions contained herein provided by the third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.”