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!