You probably have heard these two before. You may and you may not...
The interesting thing about these two concepts is that who understands them, understands wealth creation and by extension enjoys life. Who doesn't, lack the understanding of the subject of wealth creation and they pay dearly for it and suffer.
You see, cash flow is how you build steady flow of income and this thing called cash flow is king. Capital gain is funds expected mid/long term from the appreciation of an asset.
Listen up, where there is no cash flow, chances of getting assets are slim, as a matter of fact, chances are next to nothing... when there are no assets, there cannot be appreciation and when there is no appreciation, there cannot be capital gain.
What i see a lot these days is a people that mix up cash flow with capital gains
Let me break it down.. Cash flow is king.
Without it, you don't even have the funds to invest in ventures for capital gains in the first place.
Without it, you don't even have the funds to invest in ventures for capital gains in the first place.
Any venture that doesn't systematically guarantee steady flow of income isn't a cash flow venture.
Capital gain ventures are long/mid term ventures. You can't enjoy them unless you can keep yourself alive and sane.
Cash flow is how to stay alive, capital gain is how to grow wealth and enjoy life.
My Sunday advise to you..
Focus on building cash flow ventures before dabbling into capital gain ventures.
Focus on building cash flow ventures before dabbling into capital gain ventures.