Monday, December 19, 2016

5 Secrets to Jump Start Your Cash Flow

5 Secrets to Jump Start Your Cash Flow
Whether you have been investing for years or are just starting your journey out of the Rat
Race, every investor needs direction and motivation. Understood and followed for years
by the rich, there are key secrets that will help every investor from the active day trader to
the budding entrepreneur to the seasoned real estate investor get better, gain leverage,
and invest wisely.
As you read Rich Dad Coaching’s “5 Secrets to Jump Start Your Cash Flow” seek to un-
derstand how each one applies in your investing pursuits and do not be quick to dismiss
one as beneath you or too advanced. The most important aspect of each principle is that
you are accountable to actually putting them into practice. These secrets are tried and
true. Learn to apply them and you will accomplish more than you would have otherwise.
With that being said, let us begin.
Secret #1 – Know Your Game Plan and Outcome.
There  is  a  difference  between  those  who  know  “how”  to  invest  and  those  who  know
“why”  to  invest.  And  by  “why,”  we  do  not  mean  some  esoteric  higher-purpose—even
though a greater goal is important. No, we mean, “why did you invest $50,000 in option
A instead of option B?”
There  are  two  kinds  of  investors.  You  can  be  an  educated  investor  or  a  successful
investor. An educated investor is someone who either through study or street smarts
knows “how” to do deals. Whether it is from diligence in educational pursuits, executing
numerous deals, or a combination of both, the educated investor understands the ins
and outs of a deal. We all need to be educated, but the educated investor stops with
the know-how.
Successful investors understand “why” to do a deal.
Successful  investors  are  also  educated  and  continually  seek  out  education.  The  dif-
ference is the successful investor not only knows how to “do the deal,” but how each
investment contributes a critical piece to their overall investment plan and strategy.
Without a plan in place, you are relegating yourself to a career of simply being an inves-
tor who knows what to do. You will move from deal to deal building a long and varied
portfolio, but never go anywhere. Imagine going to the grocery store without a list or a
menu. You would go up and down the aisles fi nding bargain prices and “great deals” on
item after item; but because you lacked a list or plan, you would leave the store with only
some tubes of toothpaste, a couple cases of soda pop, and an assortment of buy-one-
get-one-free snacks. While you may have saved 70% on your grocery bill, you have left
without anything for dinner tonight.
If you do not know why you are making a deal or investment, then it does not matter how
great it is or how fl awlessly you execute it. Education is important; but if you are aimlessly
pursuing opportunities without thought for the bigger picture, you can easily fi nd yourself
holding a portfolio that does not allow you to realize your dream.