Is it better to focus on building wealth (net worth) or making sure you have enough money coming in to cover your bills (cash flow)?
This question represents a classic financial tug-of-war, and the answer, as you might have guessed, is both.
So this week, we’re tackling both sides of the argument and reminding you why you don’t have to choose. Cash-producing assets like rental properties, dividend stocks, and business ownership allow you to generate cash in the short term while still building wealth in the long term.
In this episode, we explore the tension between cash flow and net worth and highlight the benefits and drawbacks of each. We emphasize the value of cash-producing assets, such as rental properties, dividend stocks, bonds, royalties, and business ownership, in achieving both cash flow and long-term growth. We also review some potential pitfalls of buying or building these assets, including the need for upfront capital, tax considerations, legal protection, and the importance of adapting to changing environments.
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