With cash flow already being revealed as the secret to great wealth, there are still many people who do not invest for it.
Instead, they helplessly see money flowing out of their pockets to the top 10% everyday, with this going on and on.
Let us now explore the underlying reasons behind this.
One reason why many people do not invest for cash flow is because of the fact that they do not know the difference between investing for capital gains and cash flow.
Because of this, many people blindly follow advice to invest for capital gains because everyone else is doing so.
An example of a capital gains investment is like buying a stock at $1 to sell it at $2.
Initially, this way of investing would be good because investors can earn fast money in a very short period of time.
However, in the long run, this would be gambling because investors are simply undertaking risks they cannot control.
Without control, investors will be consistently surrounded by risk of losing their wealth.
Thus, while many can get rich by investing for capital gains, it is also easy to get poor if you bet on the wrong trend.
Here, when compared to stable cash flow investments like rental real estate, capital gains investors do not enjoy guaranteed but passive income every month and are always in fear of choosing their investments wrongly.
The next reason why cash flow investments are less preferred is because it is easy to play capital gains investments.
Today, capital gains investments like stocks are highly accessible as investors simply just need to find brokerage firms to start trading accounts in order to enter markets.
In addition, investments like stocks are very liquid and easy to get rid of.
Here, it will be very easy to cut losses and exit the market compared to investments like property which take a very long time to be liquidated.
Because of this, many people prefer capital gains investments.
However, given the liquidity of such investments, most capital gains investors as a result do not think long enough compared to cash flow investors who know that their investments may not be as liquid.
This causes rash decisions to be more easily made, thus leading to losses.
Another reason why most people prefer capital gains investments is because cash flow investments require more financial complexity.
In cash flow investing, investors need to have knowledge of both potential income and expenses.
Also, they must know how to project the performance of investments based on variables.
Because of this, they have to be very financially savvy and literate because any wrong move can lead to heavy losses, exacerbated by the low liquidity of most cash flow investments.
In contrast, most capital gains investments do not require such financial sophistication and knowledge.
As a result, people find it easier to make money from them instead of cash flow investments where they have to be humble students of finance.
Since most people want to get rich quickly, they won't like investing for cash flow as it would take up too much time when compared to capital gains investments.
The next reason why most people do not invest for cash flow is that they are lazy.
In cash flow investments, besides the financial complexity involved, they are also very hard to find because most potential investments cannot provide you positive cash flow after factoring in the income and expenses.
Due to the hardships involved in finding one, many give up doing so and do it the easier way by investing for capital gains where almost any investment can be exploited to earn you lump sums of money, only depending on the amount.
Lastly, most people have the entitlement mentality and expect the government to help them get rich.
Because of this mindset, many people stay passive in their road to wealth and prefer seeking easier approaches to wealth instead of those which are harder but guarantee wealth.
To add on, many socialist programs are also available to support these people financially and this reduces incentive for people to pursue wealth.
All these kill dreams and cause people to waste the gifts they can have because they know that they do not have to work hard to be financially secure.
In conclusion, after knowing why so many people do not invest for cash flow, I would like you to remember an important fact.
Today, 90% invest for capital gains while only the top 10% invest for cash flow.
Do you want to be mediocre or special? The choice is in you!
Instead, they helplessly see money flowing out of their pockets to the top 10% everyday, with this going on and on.
Let us now explore the underlying reasons behind this.
One reason why many people do not invest for cash flow is because of the fact that they do not know the difference between investing for capital gains and cash flow.
Because of this, many people blindly follow advice to invest for capital gains because everyone else is doing so.
An example of a capital gains investment is like buying a stock at $1 to sell it at $2.
Initially, this way of investing would be good because investors can earn fast money in a very short period of time.
However, in the long run, this would be gambling because investors are simply undertaking risks they cannot control.
Without control, investors will be consistently surrounded by risk of losing their wealth.
Thus, while many can get rich by investing for capital gains, it is also easy to get poor if you bet on the wrong trend.
Here, when compared to stable cash flow investments like rental real estate, capital gains investors do not enjoy guaranteed but passive income every month and are always in fear of choosing their investments wrongly.
The next reason why cash flow investments are less preferred is because it is easy to play capital gains investments.
Today, capital gains investments like stocks are highly accessible as investors simply just need to find brokerage firms to start trading accounts in order to enter markets.
In addition, investments like stocks are very liquid and easy to get rid of.
Here, it will be very easy to cut losses and exit the market compared to investments like property which take a very long time to be liquidated.
Because of this, many people prefer capital gains investments.
However, given the liquidity of such investments, most capital gains investors as a result do not think long enough compared to cash flow investors who know that their investments may not be as liquid.
This causes rash decisions to be more easily made, thus leading to losses.
Another reason why most people prefer capital gains investments is because cash flow investments require more financial complexity.
In cash flow investing, investors need to have knowledge of both potential income and expenses.
Also, they must know how to project the performance of investments based on variables.
Because of this, they have to be very financially savvy and literate because any wrong move can lead to heavy losses, exacerbated by the low liquidity of most cash flow investments.
In contrast, most capital gains investments do not require such financial sophistication and knowledge.
As a result, people find it easier to make money from them instead of cash flow investments where they have to be humble students of finance.
Since most people want to get rich quickly, they won't like investing for cash flow as it would take up too much time when compared to capital gains investments.
The next reason why most people do not invest for cash flow is that they are lazy.
In cash flow investments, besides the financial complexity involved, they are also very hard to find because most potential investments cannot provide you positive cash flow after factoring in the income and expenses.
Due to the hardships involved in finding one, many give up doing so and do it the easier way by investing for capital gains where almost any investment can be exploited to earn you lump sums of money, only depending on the amount.
Lastly, most people have the entitlement mentality and expect the government to help them get rich.
Because of this mindset, many people stay passive in their road to wealth and prefer seeking easier approaches to wealth instead of those which are harder but guarantee wealth.
To add on, many socialist programs are also available to support these people financially and this reduces incentive for people to pursue wealth.
All these kill dreams and cause people to waste the gifts they can have because they know that they do not have to work hard to be financially secure.
In conclusion, after knowing why so many people do not invest for cash flow, I would like you to remember an important fact.
Today, 90% invest for capital gains while only the top 10% invest for cash flow.
Do you want to be mediocre or special? The choice is in you!
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