Why Millionaires Prioritize Cash Flow
Cash Flow: The Financial Oxygen
The importance of cash flow is a topic that, while essential, is often overlooked by those who aspire to accumulate wealth. While most people focus on generating large sums of money or acquiring high-value assets, true millionaires understand that what really sustains their wealth over time is the ability to maintain recurring income. Without a focus on cash flow, income can disappear as quickly as it arrives.
Statistics show that 70% of families who achieve significant fortunes lose them by the second generation, and 90% by the third. This phenomenon, known as "shirtsleeves to shirtsleeves in three generations," not only affects wealthy families but also anyone who doesn't understand the value of constant cash flow. For those aspiring to wealth, this should be a key focus.
Why is it so important? It's simple. Imagine you lose your job during a crisis and all you have are index funds and a mortgage to pay (not to mention any other debts you might have). You could sell you…