Cash Flow Statements: The Road to Financial Freedom
As many of you know Rich Dad Poor Dad changed my life. When I read that small purple book, I understood cash flow was a key to peace of mind. However, it took me almost 20 years to play The Cash Flow Game. The cashflow game taught me two important concepts that I didn’t grasp in school: The Cash Flow Statement and Balance Sheet. Why are these important? The Cashflow Statement is like a gas gauge for your life. It lets you know if you have more month than check, as my mentor Robert Helms always says. It never feels good when you look at the menu and select based on the price rather than what you want. The balance sheet is your key to fill up the tank!
The cashflow statement is a simple concept that can change your life. Here is how it works: take Income from employment add income from investments, then subtract monthly expenses. An example is highlighted below:
If you’re not tracking your cashflow monthly, then no better time to start today. I have developed a simple form that will help you generate a cash flow statement by answering these 3 questions. Click here to fill out your own cash flow statement. Documenting the cashflow statement monthly forms the baseline needed to take action and increase your income year over year. The next newsletter will provide a link to building a balance sheet. I will discuss how the balance sheet is the key to increasing income from investments year over year.
This is important to me because when I left college, I thought the only way to generate income was through a job. While a career is an important way to generate income. To build financial freedom and retirement you must develop income streams that cover your expenses. Understanding these tools enables us to create a plan for financial freedom where we have more money than month!
If you would like to meet with a professional that can help you review your financial assets and cash flow at no charge, I have been building a team that can support me, and you. Stephanie Riley is an experienced investor who offers a complimentary 30 min strategy session to you. During a Personal Strategy Session you’ll review a financial snapshot of your balance sheet, income and liabilities, plus discuss successful strategies investors use to build wealth. I recommend Stephanie because she is an independent 3rd party who receives no compensation from us, however, she and her team understand the importance of working as a team with CPAs, attorneys and investment teams to help you leverage your balance sheet and build passive income. These consultations are helpful because everyone has a unique situation and you can benefit from these professionals' combined years of experience.
Stephanie Riley
Equity Strategies Team
USA Mortgage
Interested in scheduling a call with Stephanie Riley? You can do so by clicking here!
Until next time take action, fill out your cashflow statement and share the wealth!
