How To Get Wealth
This is not rocket science. It’s such a simple process but profound.
CASH FLOW
This is money you make.
EXPENSES
Money you spend.
ASSETS
Special purpose vehicles that actively and passively keeps spinning cash flow.
Wealth creation and multiple streams of income is not mysterious but a formula. Broke people don’t seem to understand the fundamentals of this formula but rich people do by acquiring assets that keeps getting cash flow.
Broke people engage in financial ping pong; they exchange their time or skills for money. When they get paid they invest on subsistence and dead assets like devices, clothes, shoes and cars. They’re always in financial deficit because after a grueling month of work they reward themselves with liabilities.
Broke people leave from paycheck to paycheck and mismanage CASH FLOW by haphazard EXPENSES. Buying an iPhone and human hair for example are dead assets because they cost you but don’t profit you. The problem with this financial lifestyle is if you lose your job or fall sick you’ll discover that you are living a rollercoaster lifestyle or living from hand to mouth. In the UK for example Nigerians have a thing or two to learn from Indians. I see Nigerians in the UK again and again living a rollercoaster financial life working their ass out only ending up buying dead assets but Indians in the UK are the biggest property owners and keep getting richer while Nigerians keep getting poorer and stressed out from keeping multiple jobs. Indians invest in ASSETS that keep paying them. An Indian will never buy stuffs. They’ll never buy expensive devices or clothes but invest their CASH FLOW in dilapidated houses and undertake renovation and start cashing out.
To create sustainable wealth the rich is intentional about reducing liabilities to the barest minimum while investing CASH FLOW in INVESTMENTS that keep producing CASH FLOW and they keep reinvesting.
The goal for the broke is to look rich by buying dead assets or liabilities but the goal of the rich is to be rich by buying ASSETS that keeps generating CASH FLOW.