By Ben Kemp
Cash – flow.
Cashflow is king in all phases of life. As financial planners and for those familiar with our work, we centre a lot of our conversations around the existence or absence of good cashflow.
When cashflow is strong, positive, reliable, then there are generally a minimisation of problems. On the flip side, when cashflow gets tight, so does often people’s ability to see through trouble and into the growth and prosperity of their futures.
The old adage of asset rich, income poor is still a very real thing for people. I know, I know, it might sound like a first world problem but it is a reality for many people that they have accumulated a healthy level of asset but still fail to live the life they desire due to their inability to generate strong cashflow.
Passive income is a common phrase that gets thrown around and is often a “goal” people present to us with. It is most certainly one of the most important tools in creating a strong financial future and allow you to reap the rewards of your hard work.
How?
That is the big question, and it is certainly not something that can be turned on overnight.
Like most things in the financial world, the creation and execution of a plan for passive income or improved cashflow takes time and discipline. Debate will rage on what is the best tool to generate consistent and growing passive income and at a high level the shares vs property conversation is certainly one that needs to be considered. Unfortunately, there isn’t a one size fits all on this and it is something that needs to be personalised for your own circumstances, timeframe and desires. The good thing is, no matter your situation there isn’t a barrier to entry in regard to scale and you can start your investment and passive income/cashflow enhancement journey with as little as a handful of dollars due to the technology and flexible tools at our disposal. The only thing we cant do is, is go back in time and start it earlier, so get thinking and get active today.
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