Do you have Working Income? Do you have Cash Flow?
Without a doubt, many people will say
“I am currently working and earning an income. This income is my cashflow”
Is the above statement right? Of course it is right. We have worked hard. Our efforts have translated into monetary gains for us. We use the money to pay for our expenses. That is the definition by most people. No way that I am going to deny the above statement as well.
However, at SmartPassiveCashFlow Blog, I would like to place Working Income and Cash Flow to be 2 different animals.
Identify Your Cash Flow
- First of all, we will need to establish the fact that you have a cash flow.
- Go through all the cash that is flowing into your pocket right now.
- Is there any cash that is generated for you using your cash and without much of your involvement?
Establish if you have an existing cash flow.
Evaluate Your Current Cash
- Go through all your liabilities and see which of those can be eliminated. You can read “Cash Flow Pockets – Yours or Mine”
- Place aside 3 months or $5,000 of your income for emergency use.
- Determine the amount of Cash Flow and Expenses (Liabilities) that you currently have. Additional Reading: “Has my Money Vanished into Thin Air“
Know your current cash position and the amount of cash that can be used.
Improve / Create Your Cash Flow
If you do not have any cash flow at the moment, you will need to start establishing a cash flow machine.
Create a Cash Flow for yourself Or to enhance your current cash flow by adding another stream of cash.
Have You Gotten Your Cash Flow Yet?
How much is Current Your Cash Flow?