We all make decisions based on what we feel like we can afford. However, we’ve also learned that there are three levels of self-awareness.
The first is that we all have a fund flow, which is the idea that, if the world gives us money, we will always be okay.
This is probably the most common assumption, but it is wrong. The problem is that money that we get from the world is NOT the same as the money we get from our savings accounts, investment accounts, or other forms of cash that are tied to our personal net worth. We all have our own personal accounts that are tied to our personal net worth, but we are not the same as those accounts.
In short, money that we have flowing through our hands and savings accounts is a form of “income” that we are not entitled to. Cash flow is the money that we receive from other people and that we can’t really control. It is the money we use to buy things that we really don’t have the right to. For example, I can’t change the way I spend my money.
The reason I ask is because I know that some of you are in that boat and it is hard to change. As much as you might want to change your lifestyle, you have to realize that your net worth is based on your cash flow. You can save it, but you cant spend it. You can buy things with it, but you cant use it. It is a very personal thing.
The net worth of the average person is about $20,000, and many of you, in your quest to save the world, have not been able to take care of that. That’s sad. But like we said, you cant really control how much you spend.
You can make a great impact on the world, but you cant really control the money you spend. It is a very personal thing. As much as we would like to be able to control our spending, we are all human. We can make money, but it is not our own.
People often use the word “cash” to describe a “donation” or an “investment” in a company. But the problem is, if you aren’t earning the money, then that money is not coming in. And in order to make money, you need to have a “cash flow.
Cash flow is when you make a payment for something you do, but you don’t have a receipt. That is not the same thing as spending the money you get to your bank account. The money you make is still coming in.
If you have to decide between earning cash flow versus a cash flow, the choice should be between buying a new car and then selling it for cash flow. If you cant sell it for cash flow, then it isnt worth the time and effort to sell it.