by Jason C. Waite
© Jason C. Waite
To learn how to be wealthy you have to learn about cashflow VS capital gains.
The power of LEVERAGE and RESIDUAL income is what allows one to become wealthy. With cashflow you can create leverage, where as capital gains you cannot.
Let's go into some examples of what the differences are between investing for cashflow vs. capital gains.
Cashflow investing is like investing in real estate that you hold, (or businesses) and have tenants paying off and putting cash into your pocked guaranteed no matter what the "market" is doing. Your goal isn't to buy a home and flip, or to know it's going to go up in value to later sell. Use the metaphor of the chicken and your rewards the eggs.
Capital gains on the other hand is like investing in stocks, etf's, or flipping property because you "know" it's going to go up. (But no guarantee.) Capital gains are impossible to leverage as if you go to your banker to ask for a loan on your mutual fund or stocks they will deny you. Your banker wants to see positive casfhflow after your tenants pay off your expenses and mortgage. Capital gains you are taxed when you sell, and the tax advantages are not as great comparative to casfhow. Use the metaphor of the chicken you slaughter but no longer will lay you eggs.
To understand capital gains, and cashflow, you first have to really know what residual income vs. linear income is, and as well the differences between bad debt and great debt. ... and do you know what LEVERAGE is? How is it acquired? Why do the wealthy have residual income and work less and have more free time? ... All questions you can observe in my previous posts/blogs and youtube channel.
The purpose of this blog is to serve you. But I need your help. Please help me spread this movement all throughout the world. Post this information everywhere. Social media, facebook, email, wherever.
Thank you and let's all work towards the path of prosperity! ... and call me! ... let's get to know each other! ;)
Jason C. Waite
