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Chapter One Cash flow is not a goal only in real estate. When I invest in oil, I invest for cash flow. I do not care if the price of oil goes up or down as long as the cash keeps flowing in. Many people invest in stocks for dividends, which is another name for cash flow. Bondholders and savers invest for interest, another name for cash flow. From my books and inventions, I receive royalties, another form of cash flow. Different words—dividends, interest, royalties—yet they all mean the same thing: cash flow. Unfortunately, after this last crash, dividends and interest from bonds and savings accounts went down. This hurt many retirees counting on that cash flow. As a kid I learned this priceless lesson from playing Monopoly: the lesson of cash flow. Take a look at the diagram on the preceding page again. Each green house must put money in my pocket, aka cash flow. I never forgot the lesson, and that is why Kim and I did not lose during the 1987 or 2007 financial crashes. Again, the reason so many millions of people lost trillions is because they invested for capital gains, chart #2. A person who invests for capital gains is gambling, always worried about the ups and downs of the market. That is why so many investors believe investing is risky. Anything is risky when you have no control. In Sunday school I was taught: “My people perish from a lack of knowledge.” (Hosea 4:6) Today millions of people are perishing financially due to lack of financial education. Millions would not have lost if they simply knew the difference between cash flow and capital gains, a priceless lesson from the game of Monopoly. 3. Send me your money Monopoly taught me to have people send me their money. When you look at a property deed with one green house on the property and the rent for that green house is $10, the person who lands on 46

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Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

Unfair advantage ebook  

by Rich Dad, Robert Kiyosaki

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