There a lot of people out there who want to help you create cash flow quick. The question, of course, is whose cash flow they want to improve when the only goal seems to be to sell you a pricey seminar, course or consulting program. But, don’t get me wrong – I believe in education and believe you need to pay to get quality education. But it’s not worth anything if you don’t put it in place.
The truth is that there are a lot of tricks you can use to improve your business cash flow. And if you don’t have a business, the best thing you can do is create a business today.
You need a few Kicking Cash Flow Quick tricks for when sales or collection lags or when you have to ramp up with some cash. But, you also need some Creating Cash Flow Slow strategies as well.
My husband Richard and I hit a big milestone on Wednesday, August 4, 2010. On Wednesday morning, I realized that we’d made enough active income to cover our entire August expenses. Awesome. The month was covered! Richard and I did a few high fives (literally) and planned a long weekend to celebrate.
The news got better though.
First a little history. About 2 ½ years ago, a business partnership I was in unexpectedly blew up. My family took a big financial hit, and I took a huge emotional one as well, losing something that was very important to me. It took me 6 months to even think about building passive and leveraged income again. There were some false starts with the wrong people in the wrong positions and then 15 months ago, it just started clicking.
We built the businesses to produce passive and highly leveraged income right from the beginning, which meant that we had to delay gratification. Passive and highly leveraged income usually means building Cash Flow SLOW.
We also wanted to manage risk with plenty of back-up plans, so we set up some rules early on regarding how many different income streams had to be operating and how much of a cash reserve needed to be set up before we could pull any cash out.
On August 4, 2010, we hit all those requirements. We will start cashing in on the passive income streams at the end of August. In fact, our initial checks (which are the smallest amount we’ll get since we’ve built an accelerator into our customized plan) will be more than our monthly nut.
It took a little less three years all totaled, but we made it back to financial freedom despite the economy and after a bad business deal and at a time when I thought we’d be retired on a beach. I’d say, not bad.
If you’re interested in learning more about specifically what we did, drop me a note at Diane@USTaxAid.com or on the USTaxAid forum. I’m happy to share the steps we used, as a gift to you.
Some of the lessons:
- Sometimes the situation can be worse then your worst case scenario. What then?
- You’ve got to protect yourself against people with bad intentions.
- Be really clear on the type of income you’re building and how it fits in your overall plan.
- Cash Flow Quick means a business and active income.
- Cash Flow Slow means delaying gratification.
- A good financial plan includes both Cash Flow Quick and Cash Flow Slow.
- The most unexpectedly powerful strategy was the 90 Day Business Blitz. (Thank you Rob Fore)
- Put ALL of your assets (tangible and intangible) to work in your business.
- Lots of small checks are safer than one big check in your overall plan.
- The quicker you can correct a problem and build on a good idea, the faster and bigger your wealth will grow. (And that means regular and accurate financial stats, plus the ability to read them.
- “Eat That Frog” (from a great book by the same name) Face your problems, fast and head on, and you’ll spend a whole less time worrying. You’ll get a faster start on building your wealth and income streams again.
- There are three stages to effective systems: (1) Creating (2) Training and (3) Enforcing. If you can’t turn your business into a passive or highly leveraged income stream, you’re missing one or more of these steps.
This week we’re going to look at real estate tax issues, no matter where you are with your real estate. How to build your real estate wealth. How to dump real estate. How to protect it. And do it all with the lowest tax rates possible.