It’s All About Cashflow And Capital Growth.
What are you doing at the moment to increase your cashflow position and improve your net worth?
According to Nathan Birch, self-made millionaire and successful property investor, cashflow and capital growth are two important keys to building wealth.
What’s the difference between rich and poor people?
Having wealth is not the only thing that sets the rich apart from the poor. The fundamental difference between these two classes is mindset. If you can adopt a wealth mindset over a slave earning mentality, it is possible to climb the ladder to a wealthier you.
How do you perceive money?
Is money something you trade your time for in the form of work? Or, is it something you can make by building an asset base?
Nathan says, poorer people tend to have a wage earning mentality whereas wealthier people focus on net worth and cashflow.
Wealthy people use the money they earn to invest in assets that will give them capital growth and an income stream. In this way, they use money to make more money – they don’t just throw it away on doodads or holidays.
Add a good dose of hard work to the mix.
While there is some truth to the saying you have to have money to make money, it is also possible to start with little and make a lot.
Nathan worked two jobs to save up his first deposits. Hard work and a strict budget allowed him to jump classes over time. He went from a working class background to having a multi-million dollar net worth.
Hustling for a better tomorrow.
He still works hard each day to push up his cashflow and improve his net worth. However, now Nathan does things on his terms. He no longer has to answer to a boss and he can give himself a wage increase by simply increasing his rents.
Anyone with a foundation property portfolio can improve their net worth and cashflow positions. They can do that by reviewing rents, removing unneeded expenses or renovating to increase value.
And anyone who is prepared to work hard and come up with a well thought out strategy can build a property portfolio to create lasting wealth and leave the workforce with financial security.
What are you doing right now to increase your cashflow and better your net worth? Please share your experiences in the comments section below.