Cashflow From Assets – How Important is it?
Let us today discuss about the Cashflow from Assets and its importance. There are basically 2 types of assets in the world. One which does not provide any cashflow at all. These assets provide only capital gains which is “On paper” and remains most of the time of the life of its owner “On Paper” only.
Another type of asset is the Cashflow Asset. Read my articles Best Cashflow Assets. These type of assets provide a steady passive income as well as capital gains. The main reason behind owning a Cashflow Asset is that, you will have a growing flow of passive income as long as you own that asset. And that’s why you can enjoy this passive income from your asset.
Take the Example of this Blog. This blog is my Cashflow Asset. It means that this blog provides me a steady flow of passive income every month. Now, the main advantage of this kind of Income is that, even if I stop working today, this Income will still keep flowing into my bank accounts for the rest of my life and even after that.
While the only disadvantage of owning a job or the asset without having a cashflow is that, you will have to hold it for the rest of your life hoping that its price will go up.
Most of the people in this world invest for Capital Gains such as Stocks, Mutual Funds, Bonds, Gold, Real Estate which does not provide a Cashflow…etc… While rich people invest for the Cashflow such as Businesses, Dividend Stocks, Rental Properties, Blogs, Websites, Web Properties, Intellectual Properties…etc..