There is one cardinal rule of wealth creation. And it has very little to do with everyday investment advice or how well your unit trust fund performs.
If you do not follow this one rule, your financial goals may slip right through your fingers.
I spend a lot of time teaching people about wealth/income creation strategies.
It’s hardly a secret, but funny enough, today’s investment advice barely touches on the point.
►What are the experts not telling you?
Early retirement, making money, becoming rich, financial freedom (call it what you want) depends almost entirely on cash flow.
A share portfolio that increases in value from $1000 to $2000 represents just one component of investment performance. This is known as capital growth.
But how much money (or dividends) does your $2000 share portfolio pay you on a monthly basis? If a company pays dividends, it will probably do so on a quarterly basis.
So if you need $300 to fund a root canal procedure in January and your portfolio will only be paying you in March, you will have to sell some of your shares to fund the treatment.
In other words, you need to decrease your investment base or capital to earn an income
The point I'm trying to make is income creation is a business. And businesses thrive on cash flow!
No Cash = No Business = No Wealth Creation
►Which one of the following options do you think is best suited to supporting your ideal lifestyle?
i) A business that generates cash flow or passive income on a monthly basis.
ii) A unit trust which hopefully will increase in value over time.
It goes without saying that option (i) is the way to go. Will your investments be able to support your lifestyle if you had to stop working today?
You must take control of your income, and a property or online business is a powerful way to do it.
If you miss out on the property opportunity, you may have to soak up a lot of wasted time and energy with ineffective products.
A business system
That generates monthly passive income
And runs on autopilot
So that you have more time to do the things you love
You also need investment advice that focuses on income creation strategies.