Here’s a description of some investors that you’ve probably heard.
It goes like this:
“Asset rich… Cash-poor.”
We’ve all heard that description, right?
I get that having assets is great for a long-term strategy… When it’s time to retire at 65 or 70, you’ll be in a good place…
But to me… I believe that it’s the biggest con ever perpetrated on the general populace.
It’s like living in poverty in the vague hope that you will be living on easy-street later in life.
Die battling so you can get to Valhalla.
It’s madness, and I want to take this opportunity to rid you of those silly notions.
I believe in balance throughout your life. I don’t believe in delayed gratification.
It’s because I believe that this is a big beautiful world. There’s a lot of wonder-filled, incredible, awesome things to experience… Right now.
Once a year I head to Europe for 5 or 6 weeks. In fact as I write this I'm on a motor yacht off the coast of Paxos in the Greek Isles.
This was me heading in to dinner last night
It’s great fun – and I look forward to it every year.
But you want to know one of the things I see every time I go?
Old people barely registering the amazing place they have travelled to.
What do I mean by that?
Look – I’m into my (Cough, Cough)-ies… So I’m no spring chicken… But I’m all about living my life now… There are adventures to be had today.
Unfortunately what happens to a lot of people is that they work their entire lives… Often doing a job they hate…
And they put off all the things they want to do until they retire.
They postpone living…
Then suddenly they retire and they pull out a tired, wrinkled piece of paper with Bucket List scrawled across the top… And they try to tick off the things on there before they die.
But quite often they are too broken, too tired and too out of practise living to really enjoy themselves.
And I’m not just talking about old people…
I see people who are younger than I am who are so utterly exhausted by life and work that they can barely see the wonders that are around them.
There’s got to be a better way – don’t you agree?
Life is happening right now and “asset rich, but cash poor” means that you’ll never have the money to really live it, until it’s too late.
You can’t eat assets. You can’t spend assets.
Assets can’t hire you a yacht to cruise the Mediterranean.
Assets cannot let you travel the world, swim with whale sharks, or eat the finest cuisine.
Only cash can let you do those things.
If you have assets but low cash flow – it seriously limits your life.
If you have cash flow but low assets… Does it matter? Would you even really notice?
I don’t know if you would… As long as you’ve got the cash flow – you’ve got whatever you need and want, to live the life you desire.
So stop thinking about assets. Forget equity and your worth on paper – it means nothing.
It’s time to start focusing on cash flow.
Everything else is a way to postpone you from living your life.
Cash flow is the lifeblood of a full life… And it should be your only focus when it comes to investing.
- How to get it.
- The fastest way to get more of it
- How to lock it in long-term
- How to protect it.
- And where you’re going to go on your next big holiday.
If you do think of assets and equity, it should only be as a function of leveraging that equity to buy more cash flow… That’s the secret to funding a life you can live right now.