Business

Business
Mindset and Freedom

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Real Estates
James Cameron Bought Farmland in New Zealand

Paper Assets

Paper Assets
以一卖烧饼的故事来描述股市

Virtual Properties

Virtual Properties
Internet VS Mobile

Invests for Both Cash Flow and Capital Gains

2009-07-21


A person with a financial education invests for both cash flow and capital gains. There are 2 main reasons why:

Reason #1: A currency must flow from an asset that produces cash flow, or it losses value. In other words, if your money is just parked and waiting for appreciation or an increase in the share price, your currency is not productive and not working for you.

Reason #2: Investing for cash flow takes most of the risk out of investing. It's hard to feel like a loser as long as cash is flowing into your pockets - even if your asset price has depreciated. On the other hand, if your asset appreciates, it's an added bonus since you are already collecting cash flow.