There is no lack of shows that portray a fabulously wealth person or family. Social media articles are published daily discussing the lifestyles of celebrities as they jet around the world. A lot of times, people tie fame to financial success and think these people always know how to make financial decisions better than most. In reality, everyone rich or not, has trouble making the best financial decisions for themselves.
So, what is the secret to knowing how to make financial decisions that are always correct? It is mastering how to make decisions that constantly increase your cash flow. You might think this easy, right. But in fact most people do not have the financial knowledge or know the process of doing so. In my experience, there are times when people ponder the choices for toppings for a pizza than the time they actually take to make important financial, cash flow decisions.
For example, when one is considering buying a house, what is the primary concern they have? Normally, it is having the cash flow to afford the mortgage, right? They will then calculate the mortgage cash flow cost, maybe consider the property taxes and other expenses of owning a property versus renting.
But buying a house is more than just being able to afford the mortgage. It is also a tax issue. How much will my tax bill change in owning a house. It is an insurance issue. Not only property and casualty insurance to protect one from the loss of the house, but also considering life and disability insurance in the event of the owner’s death or more likely disability and wanting to ease the burden on loved ones. It is an investment decision. Most homes need additional investment to improve the home once it is purchased. A new roof, plumbing, landscaping, and possibly a new addition. How are these improvements to be financed? It is an estate issue. In the event of the passing of the owner, who gets the house? This means making sure wills and estate papers are updated. So, the purchase of a new house can a lot more complex and have a great effect on your future cash flow and wealth.
Besides purchasing a new home, there could be decisions like lease or buy a new car, starting a business, changing jobs, investing in a business, funding IRAs and 401k’s, saving for the education of children, portfolio management and many more financial choices, that if not decided wisely can sentence you to working harder and longer in life or not having the cash flow for the lifestyle you wish now or in the future.
What do the savvy rich do more often when faced with how to make financial decisions? They surround themselves with a financial coach and good advisors. These advisors make up for the lack of knowledge they have. Great athletes have great coaches to guide them. Be a great athlete with your money and increase your probabilities of becoming rich and staying rich.
If you are ready to take the first steps towards living the way you want now and for the rest of your life, look no further than this book, “Master Your Cash Flow.” Find out more here: https://alzdenek.com/book/