A New Definition Of Financial Wealth

A New Definition Of Financial Wealth

The financial media and celebrities have convinced 99.99% of the world to measure financial wealth by looking at what you have accumulated. This is also known as your net worth or statement wealth.

The wealthy know that your net worth does not matter. The value of your businesses and assets is essential.

However, the cashflow of your businesses and assets matters most.

They understand that if they focus on cashflow and increase the cash flow from their businesses and investments, the value of these assets will be appreciated.

By focusing on cashflow and increasing cash flow that increases the value of your assets, your net worth will also continue to grow. For that reason, they focus on contractual wealth, not statement wealth.

Robert Kiyosaki is the author of the best-selling personal finance book Rich Dad, Poor Dad. He wrote that the new way to determine financial wealth is to answer the following question: “If you stop working today, how long will you be able to maintain your current standard of living?”

One of the biggest wealth secrets you won’t hear from financial media and celebrities is that financial wealth is measured in time, not net worth.

If your answer was one year, you have the financial wealth you need to live for one year.

If, instead, you answered that you could maintain your current lifestyle for the rest of your life, you are infinitely financially wealthy.

You can passively generate the monthly income from your investments through cashflow investing strategies and never outlive your capital.

Additionally, you can transfer these cashflow-generating assets to your children and your children’s children.

Cashflow investing will allow you to build and live your legacy today and leave a legacy for your family.

Reverse Engineering Financial Freedom

Why do people die?

Other than health deterioration, multiple studies suggest that people die when they lose purpose in their lives, they lose relationships, or when they run out of money.

If you think about wealth, the four reasons people die are also the four things that allow us to live life to the fullest and fulfill our potential as people on this earth.

Dan Sullivan from Strategic Coach talks about the four types of freedom: money, time, relationships, and purpose.

To escape the rat race and matrix means that money is no longer a reason you do or do not do things; you spend your time as you wish with the people you want to spend time with, and you can live each day aligned with your purpose.

That is true freedom.

Cashflow investing is a strategy that can help you achieve that.

Share This

Posted in


Leave a Comment