From the standing desk of Kyle Nitchen
Subj: Cash Flow
Getting rich is a taboo topic in our society.
Often times, being rich or even desiring to become rich can be mistaken for being greedy, selfish, or gluttonous.
Every day, every one of us is confronted with money requirements and limitations: from shopping at the grocery store, to feeding yourself, to taking care of your family, to funding yourself through old age, to taking care of unexpected setbacks.
Having money is a good thing. Having a lot of money is a great thing. Money just makes you more of what you already are.
As I’ve been educating myself on the accumulation of wealth, it seems the entire subject of money is greatly misunderstood.
I started studying wealthy people, and put my trust in them because I could not yet trust myself.
The 3 Cash Flow Patterns
One of the best principles to understand is the 3 cash flow patterns of the poor, middle class, and the rich. When we become aware of these patterns, we can recognize how we operate and eliminate any bad habits.
You know the old saying “Ignorance is bliss”? Well, let me tell you: when it comes to your finances, ignorance is not bliss. Ignorance is pain and poverty. Ignorance is disaster you and everyone you are responsible for.
1. The Poor Cash Flow Pattern
The poor spend every penny they make and own no assets. It is simply money in and money out.
2. The Middle Class Cash Flow Pattern
The middle class accumulates more debt as they become more successful. A pay raise qualifies them to borrow more money from the bank so they can buy things like cars, vacations, boats, and more.
As their income increases, so does their personal debt. That is what we call the rat race.
3. The Rich Cash Flow Pattern
The rich have assets that work for them. They have gained control over their expenses and focus on acquiring or building assets. Their businesses pay most of their expenses, and they have a few, if any, personal liabilities.
“To win at the game of money, you have to be on the field as an offensive player first. Later, once you are way ahead in the game of money, you can play defense.” – Grant Cardone
Ask yourself: Which cash flow pattern are you following right now?
Questions, comments… feedback?