Invest for Cash Flow

Cash flow is one of the most underrated aspects of a strong financial plan. Cash flow is defined as how much free cash you have each month after you account for your income and expenses. You can determine your cash flow with a cash flow chart to help you visualize your earnings. Why is cash flow so important? Because it doesn’t matter how much money you make if everything that comes in goes right back out. There are plenty of people earning a six figure income who have very little to show for it except a stack of bills and a few nice toys. What you do with your money is much more important than how much you earn. Because of this, investing for cash flow should be part of every good financial plan.

Examples of investing for cash flow include investing in dividend stocks. rental income, operating a small business, buying a franchise, investing in peer to peer lending, and similar investments that make regular cash payments.