Cash flow pattern of Rich people
Posted December 1, 2009on:
Have you ever learnt to ride a bicycle or have seen anyone learning how to ride a bicycle? It seems difficult first but when a person learns it after making various mistakes, slipping and may be, with certain injuries, riding a bicycle becomes a joy.
Likewise, becoming rich seems difficult first (as their cash flow patterns are different) but once learnt, its a joy ride….
Becoming rich need a new set of mind-set altogether.
Let’s try to understand cash flow pattern of rich people, before we see how rich people make money:
Cash flow pattern of poor: He / she earns income, pay taxes and spends from whatever is left
For Middle class, cash flow pattern: Earns income, pay taxes, pays liabilities (mortgage, lease), expenses….
Rich class: Earning comes from assets, company pays taxes and pays for expenses of the person, rich person has money to spend on other assets!!!!
To be rich, a person needs to improve : CASH FLOWS.
THOUGHT OF THE DAY
Hence, to be rich, a person needs to create assets which generate enough cash to meet expenses….
How can a person create income generating assets?
STOP FOR A WHILE, TAKE OUT SOME TIME AND THINK: DO YOU HAVE INCOME GENERATING ASSETS? IF NOT, DO YOU HAVE ANY PLAN TO CREATE AN INCOME GENERATING ASSET?
Here is a seven steps plan suggested in the CASH FLOW QUADRANT:
1. It’s time to mind your own business
2. Take control of your cash flow
3. Know the difference between Risk and Risky
4. Decide what kind of investor you want to be
5. Seek mentors
6. Make disappointment your strength
7. The power of faith.
You want to know more on the above seven steps? Kindly keep visiting the website.
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