Cashflow Is the Glue That Holds All Investments Together

Whether your income only comes from being a wage earner or it is the result of investments or a combination of the two, the thing that makes any of these sustainable in the long term is that the amount of money coming in is greater than the amount of money going out.

When you have an income solely from a job there is always the problem that you are an employee and therefore subject to the decisions of the person running the company you work for, whether they are the same decisions you would make or not. Also because employees generally work from the mindset that there will always be more money with the next pay check it is very easy to use up everything you earn without necessarily planning too far into the future.

An alternative to being an employee is to own your own business where you can make your own decisions about how the business is run. If you decide to do this, in some ways you will have more freedom but in many cases you will work a lot harder. The key component here is that managing your own cashflow is even more critical as not only your personal income is dependent on this ability but the income of the company will be dependent on it as well.

If you decide to plan for your future and invest in property the ongoing cashflow can be a constant battle. Indeed having a regular cashflow in property can be the difference between having a successful property business and one where you have to sell your property at a loss to pay the mounting cashflow deficit.

If you decide to plan for your future and invest in the share market this can provide a cashflow for you if you invest in companies that pay dividends, however, as we have seen over time, the stock market is not necessarily a guarantee that a company that performed well yesterday and paid regular dividends will continue to do so today and tomorrow.

Since the “Global Financial Crisis” and indeed at times in the past and most probably in the future people have felt ongoing uncertainty about their incomes, interest rates and their ongoing cashflow. Indeed having the ability to manage your cashflow is the critical component in financial success, no matter what level you decide to play at.

One of the first steps you need to take when managing your cashflow is to understand completely what income you have coming in each week/month and what expenses you have going out. It is also important to understand what the necessities are and what is optional.

Although many people will look at that statement and think “budgets”, I don’t want to have anything to do with them, the only way that you can get control of any situation is by having control and the only way to have control is to know where you are now.

When you are working out where you are now make sure you separate what are fixed essential expenses, like loan payments, insurance and registration payments then work out your variable essential payments like food, petrol, school fees, medical expenses etc. Lastly work out your discretionary expenses like take away food clothes entertainment etc. that you can adjust to make sure you don’t use up all your cashflow.

When you understand what your cashflow is and you decide you need some more income one of the fastest and most effective ways to do this is to get involved in the direct selling industry. This industry allows you to start with a minimal investment and work towards creating a regular cashflow for yourself or you can start with a larger initial investment and create that residual cashflow sooner rather than later. You can do this alongside what you are currently doing or you can make it a full-time business.

The choice is yours.

One of the most important things to consider in any direct selling business is who your sponsors are and how much support they are going to give you. Many people in the industry just try to sign people up without really considering what the needs are of the people they are talking to. A good sponsor will consider what you need out of the business and will adapt and offer the support that you require rather than just what they want to give.

The most important thing to remember is that no matter how much you earn or how many expenses you have the ability to manage your cashflow is what will make your life smoother.

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Phoenix Investment Properties Are A Smart Option

For those investing in real estate, buying in the right region is critical to seeing a return on their investment. You can’t just purchase in a place where very few people are interested in living and then expect to sell the house or property swiftly; you need to do your research and find an area that is desirable to many people. If you are considering real estate investment in Arizona, then Phoenix may just be the first option for you. With the many businesses and flourishing economy, the city is prevalent with possibilities for investors to realize a profit. Phoenix investment properties are a great choice for investors, as long as they are selected wisely.

A Rising City

Phoenix is the sixth-largest city in the United States, with a population of more than 1.3 million people and growing every day. There are thousands of things to see and do any day of the week, from taking in a Phoenix Coyotes home game to biking in the nearby mountains, there is always something to do in this vivacious city. People of all ages are flocking to North Phoenix and the surrounding areas because of the pleasant weather and beautiful native landscaping. Retirees are amazed by the area because of the more than 190 golf courses available, as well as the many different living choices. Young people are finding that the very active city offers many career choices with Fortune 500 companies and amazing nightlife where they can meet new people. Young families appreciate the distinguished educational institutions in the area and the hundreds of things for families to share, such as parks and recreational activities. What does this all mean for those considering North Phoenix investment properties? That buying property in Phoenix can be a great choice because there is lots of enthusiasm to live in the area.

A Extensive Diversity of Available Properties

Another thing to ponder when contemplating Phoenix investment properties is the types of possible homes, condos and land. Whether you are looking to buy a home or condo, do some enhancements and put it on the market, or you want to buy land and develop it, Phoenix has a plethora of probability for you. Properties available right now come in a wide range of prices and many have characteristics that are huge selling points for those looking. With a little bit of work and an artistic vision, these houses can be restored to impeccable radiance. You can purchase at affordable prices and get them back out on the market for a fast sale.

Purchasing North Phoenix investment homes and restoring them yourself is a great idea, as you can take your ideas from concept to reality. Houses here are full of opportunities, as the Southwestern plant life provides the splendid backdrop to your development makeovers.

If you have the drive and the aspiration, consider North Phoenix investment homes as your next business endeavor. Take time to see what is available and you may find a vast amount of possible investments for you.

Have You Considered Investing In Friends and Relatives

With the uncertainty surrounding Wall Street and government investments these days have you ever considered investing your money closer to home? Particularly with people you know and can influence, in ventures you understand, and with products and services you can see and use yourself.

Investing locally and/or with people you know can certainly generate respectable returns, or even additional income during your retirement years in greater amounts than you might otherwise earn. It can also help support local communities.

With Treasury Bills and CD’s earning less than the inflation rate, before taxes, and bonds and other traditionally safe investments only a little better if any, tying yourself to some physical enterprise offering a product that’s in demand, the prices of which adjust with inflation and the declining dollar, makes more and more sense.

Look around your community for businesses you admire because they sell a superior product or service and particularly a friend or family member who may be an entrepreneur needing some investment capital in exchange for a piece of the company.

The kinds of investment situations you might get yourself into are many and varied of course, and would largely depend on your particular situation. You might put up a portion of the capital required to start a new franchise in your area and remain a silent partner, or pool your resources with other investors in a real estate venture. Or you might provide a loan with an interest rate greater than you could get in other investments.

One friend of mine started a lawn maintenance and landscaping company many years ago. When his son who was in his early twenties began to work with him and learn the business then my friend began to work at it less and less as the son took over most of the operation. Now in his mid-fifties my friend spends much of his time on his hunting lease or fishing while his son expands the business and they all share the income in agreed upon amounts.

You may not have a family business for a son to take over but you may have valuable business experience and/or contacts that could make a small business or a new venture much more successful than it might be without you.

When you compare these kinds of investments to the stock market or to instruments tied to the unstable dollar they can, sometimes, be much more rewarding in a number of ways.

Of course there are risks, both financial and relationship risks are possible when lending money to or going into business with friends or family, and therefore you must do it wisely. But when all the pieces of the mix fall together in the right and necessary ways it can work wonderfully and make you and yours both happier and richer.