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Focus on Cashflow, Not Net Worth
But both numbers are important.
Disclaimer: All investment strategies and investments involve risk of loss. Nothing contained in my stories should be construed as investment advice.
Usually, when people imagine being wealthy, they are thinking about how nice it would be to spend that kind of money. They’re picturing big homes, nice cars, and drinking Starbuck every day (without guilt).
But very few people are picturing logging into a bank or investment account and delighting in the number they see there.
Saving is not sexy.
It should be, but it’s not.
And consumption is the opposite of building wealth.
In order to grow your nest egg, you need to focus on cash flow instead of focusing on how much you are worth. Beyond making sure that your investments are secure (whatever that means these days) and reasonably diversified, the goal should be to maximize your monthly cash flow.
Having multiple streams of income is important to ensure that losing any one source of income would leave you financially devastated.
Creating multiple income streams doesn’t mean that you need to work 16 hours a day at various jobs (although that’s an option, sleep and downtime are important, too).
