Most of the people struggle financially & remain poor and middle class because they don’t invest for Cashflow. All the Middle Class people invest for Capital Gains and that’s why they remain middle class only.
While Rich people invest mainly for Cashflow. Rich always ask for ROI – Return on Investments. If you don’t know the Basic Difference between the Cashflow & Capital Gains than read the following article.
The main aim behind investing for Cashflow is to generate Passive Income from your Assets. The main Goal behind Cashflow is Simple – “to build a passive income from real estate deals and business investments that is 1X to 2X your living expenses, at that point you escape the “rat race” and move on to the “fast track” where you can build your business empire and do lots of cool stuff.”
Take the Example of “My Journey To Billionaire Club”.
MJ2BC is my Internet Business. I am investing my Money & Time both behind this Internet Business for Cashflow & not only for Capital Gains. What the most of the people do on the Internet? Well, they do Website/Blog/Domain Flipping to make huge bugs.
Of course, they succeed but to maintain that level of Income, they have to work very hard whole of their life until they die. They have to flip those websites, Blogs & Domains several times a year to earn 6 figure Income but at the end, they don’t have any possession over any Asset.
But instead, if you invest your time & money behind developing some Cashflow generating Asset (Such as This Blog) than you will have a nice and steady passive Income for whole of your life and thus you will be able to do lots of cool stuff in your life.
Most of the people Invest for Capital Gains means they follow the single formula - “BUY, HOLD & PRAY.”
Capital Gain Investments -
01) Stocks
02) Bonds
03) Gold
04) Mutual Funds
05) Real Estate without any Income (Non-Rental Properties)
06) Retirement Plans
07) Savings Accounts
08) Fixed Deposits
09) Pension Plans
10) PPF (Public Provident Fund)
11) ULIPs (Unit Linked Insurance Products)
12) EPF (Employees Provident Fund)
Cashflow Investments -
01) Businesses (Offline & Online)
02) Real Estate (Rental Properties which produce positive Cashflow)
03) Internet Assets: Websites, Blogs, Forums, Internet Businesses which produce steady Google AdSense, Amazon/eBay Affiliate & Click Bank Income.
Smart (Rich) people Invest in Cashflow Investments while everyone else invest in Capital gain Investments. In fact, most of the Financial Products available in the market are based on Capital Gains.
I have seen several people who have hold stocks of Some reputed companies for most of their lives without enjoying their lives. I have also seen several people who have bought a piece of Real Estate (Non Income Producing) and hold it for decades hoping that one day the prize will go up.
These people are invest for Capital Gains and that’s why most of the part of their life they have to Hold that Investment without having any Passive Income. While Rich people invest for Cashflow since early life and that’s why they have around 10X Passive Income (Cashflow) than their expenses and thus they enjoy the life most.
So now you decide yourself that, weather you want to invest for Capital Gains or Cash flow?
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