Faith Heart Magazine Jewel Tankard - Page 25

So, when making purchases, think about it in terms of whether the purchase is going to create income for you or is it going to be a liability—in other words, a debt that is owed.  Designer brands are nice—I like them myself—but they do not create cash flow?  I know there are some financial advisors who advise that you should first get out of debt and then start investing.  But honestly, I don’t believe in that philosophy.  Consider this unfortunate possibility: what if it takes you 20 to 30 years to get out of debt? Most people would say that you have to begin living beneath your means, but I don’t agree with that either.  I don’t like the notion that people should forego the things that they like.  I want you to be able to get the things that you enjoy.  Whether that’s a Starbucks coffee or getting your nails and hair done.  To me, those things are basics that I will never tell someone to compromise.  After all, when you look good, you feel good.  I believe the reality is that people buy into you based on your presentation.  So if you don’t feel or look your best, it can affect your business.  Once you set a standard for yourself, everything else will line up.  When you set goals for yourself, things will start to happen, especially with the right mentorship and the right team. There are two types of debt: good and bad.  Good debt is utilizing other people’s money to create cash flow.  Bad debt is buying anything that doesn’t create cash flow: clothing, shoes, purses.  Ladies, I love them like anyone else does, but remember that these items don’t create cash flow to build your investment portfolio.   Now that we have touched on debt, here are some of the things that you can do to better create cash flow.  Being cash flow positive will aid in your beginning to invest in hard assets. FHM 25