Stop Chasing Capital Gains: Why Cash Flow is the Real Wealth Builder

"The point is you go to work every single day you get this paycheck every week every two weeks every month every time you get paid you're going to take a little bit of this money and buy this asset Now when you do this week after week after week month after month after month year after year after year decade after decade now you're going to be building a solid stream of cash flow"

"if you put in a decade of time where you're working to live smaller so you have more money here and then you take this money and you use it to buy these assets that are paying you with cash flow well now after a decade of sacrifice you are going to be able to reap the rewards of that which is now you're going to finally have a solid stream of cash flow"

"if you can build this type of cash flow well now you have true Financial Freedom because now you have assets that are paying for your lifestyle instead of just you working to pay for your lifestyle"

"companies that pay a dividend generally pay out this dividend quarterly meaning every 3 months so now if you buy a stock that's paying a dividend that means you're going to get a cash payment every 3 months for doing nothing except owning the stock"

"now instead of investing in one company like let's just say apple now you can invest into a basket of companies that have say 500 different companies in here and apple is just one of the companies and there's 499 other dividend paying companies in here so now we can go and find these dividend paying funds again you have ETFs mutual funds index funds"

"you buy this property you rent it out to somebody else maybe they live in or use this property and then in exchange for them living in and using your property they pay you rent now the key here is this rent has to be enough to cover your property taxes Insurance your maintenance your management fees any vacancy costs and then if you have any debt cover that as well and then put some money in your pocket each and every month"

"what I like to do is I want to make sure I can make a profit in my cash flow every single month and just keep working to accumulate the cash flow I just want to keep stacking the cash flow"

"your 20s are a time when you first start making money and it's very common and normal to be done with their money because well it's the first time you ever make money so now you want to go out and buy the nice things you want to start spending money you want to start going on vacation you want to start buying a nice apartment you want to get a nice car and you want to just start exploring and enjoying life"

"I'm going to draw you right here for my male followers I'm going to draw you a mustache and for our female followers I'm going to draw you a braid in my native language Punjabi we call a mustache a much and a braid a good so now you go to work every single day at this job maybe this job is your business and then this job is going to pay you a salary now you're going to take a piece of the income that you did not spend at Gucci and chipotle and you're going to take this money and you're going to invest it into this asset now this asset could be something like a dividend paying stock it could be something like real estate I'll talk about how you can do this in just a minute but now you're going to take this money put it into this asset that's going to be generally passive on your end not completely passive but generally passive and now that you own this asset it is going to pay you with cash flow maybe you get a check every month maybe you get a check every 3 months maybe you get a check once a year just depends what this asset is and now you can take this money that you're generating and you can either buy more of these assets that are going to pay you with more cash flow or you can take this money and use it to go out and buy you a brand new car that's going to be your choice but this is how real cash FL investing works"

"you don't get rich by Investing For Cash Flow you got to be rich first to get a lot of the cash flow that will make you wealthy the reason why is because you got to take the money that you're earning that you don't spend at your Poland GUI and then you take this money to buy these assets so you need the money to generate the cash flow in the first place"

"let's assume I'm going to be very generous here let's assume that you can get a 10% cash flow return that's very high by the way but let's assume you can get a 10% cash flow return that means if you invested $1,000 into this asset you're going to generate $100 after one year of cash flow $100 from $1,000 is not going to really pay you much"

"if you invested $100,000 then you're only generating $10,000 a year now $10,000 a year is a lot but it's not even $1,000 a month it's not lifechanging money for you to go and start driving a Rolls-Royce you need the money to invest to generate the cash flow"

"the point isn't for you to go and invest into this cash FL asset today and never do it again the point is you go to work every single day you get this paycheck every week every two weeks every month every time you get paid you're going to take a little bit of this money and buy this asset now when you do this week after week after week month after month after month year after year after year decade after decade now you're going to be building a solid stream of cash flow especially if you're taking this cash flow that you're generating and using it to buy more assets because now you're making money to buy cash flow and the money that your money makes is buying you more cash flow as well"

"and now if you do this for long enough now you're going to be able to build a solid stream now the more money you invest into this asset the more cash flow you're going to be able to generate and this is why I call it the decade of sacrifice because if you put in a decade of time where you're working to live smaller so you have more money here and then you take this money and you use it to buy these assets that are paying you with cash flow well now after a decade of sacrifice you are going to be able to reap the rewards of that which is now you're going to finally have a solid stream of cash flow"

"the reason why the majority of people will never become financially successful or wealthy the majority of people do not want to make this financial sacrifice of you working to live smaller so you have more money here and then you take this money and you use it to buy these assets that are paying you with cash flow"

"well some companies in the stock market not all of them but some companies on the stock market pay what's called a dividend a dividend is a cash payment that you get as an investor for doing nothing except owning the stock now again not every company pays out a dividend"

"when it comes to saving the money in a company you got to think from the perspective of a business owner if a company makes a $100 million of profit and the kept the $100 million in their bank account well that's dead cash sitting there not every company wants a ton of dead cash sitting there because the $100 million isn't generating a return for the company companies want to do something with their money or at least give this money to their owners and so if a company has a big enough bank account or a big enough savings account they might not want to save more money which then brings us to option two which is reinvest the money back into the company"

"the alternative to investing into an individual company is to invest in something like a fund maybe a dividend paying ETF a dividend paying index fund a dividend paying mutual fund now instead of investing in one company like let's just say apple now you can invest into a basket of companies that have say 500 different companies in here and apple is just one of the companies and there's 499 other dividend paying companies in here so now we can go and find these dividend paying funds again you have ETFs mutual funds index funds"

"option number two is you invest in real estate now you're going to go out and buy a property maybe it's a house maybe it's an apartment complex maybe it's an office building if that's something you're into maybe it's a retail building maybe it's a mixed use building maybe it's a storage building you're going out and you're buying this property but you're not buying it to live in or use yourself you're buying it to rent out to somebody else so now you buy this property you rent it out to somebody else maybe they live in or use this property and then in exchange for them living in and using your property they pay you rent"

"now the key here is this rent has to be enough to cover your property taxes Insurance your maintenance your management fees any vacancy costs and then if you have any debt cover that as well and then put some money in your pocket each and every month that's the right way to invest in real estate"

"there's some people especially when you're in a very hot sellers market like we've been seeing when you're in a very hot sellers Market you will see investors go out who have a lot of cash just go out and buy properties and say you know what I'm okay losing money every single month because I think this property is going to be more valuable next year so I'll be able to flip it for a profit that's not the game that I play that's too risky that's too speculative because I have no idea where housing prices or real estate prices are going to be in a year I don't like to play that game"

"what you need to do is find the right balance for you personally I invest in stocks and I invest in real estate it's just something that I'm interested in you don't have to go out and blindly follow anybody else you don't want to be a sheep the idea is for you to go out and build your financial education learn how to invest and find the right strategy that works for you that works for your family and that works for your financial goals"

"for me I like cash flow because cash flow is something that I can predict and when I got the cash flow coming in well now I know I can go out and spend my money at least the cash to that I'm generating and I really have to worry about it because even next month I'm going to get another cash flow check that's the way that I like to run my finances"

"your 20s are a time when you first start making money and it's very common and normal to be done with their money because well it's the first time you ever make money so now you want to go out and buy the nice things you want to start spending money you want to start going on vacation you want to start buying a nice apartment you want to get a nice car and you want to just start exploring and enjoying life because you're finally out of school and you're finally making some money"