Become Rich By Mastering Cash Flow

COLLIN HARNESS

The median household income in 2021 is $68,703 per year.

People that move from the middle class to the upper class in their lifetime become masters of cash flow. Most millionaires do not actually look like millionaires. They may own businesses or have millions due to investments.

The key is to master money coming to you rather than flowing away from you.

You want to have an assembly line of money always flowing and growing into your account.

You accomplish this task in 2 ways.

  1. Earning money
  2. Investing money

You must start by earning money. The more money you can earn the more money you can invest. My goal is to invest as much money as possible.

My salary has never been huge. If fact I make less than the average household. But I have been able to accumulate wealth because I have used all of my extra income to invest and grow those investments.

The best, most successful businesses know how to make and grow their income. They become masters of their cash flow. Reducing their costs while maximizing their income.

We are the same way. The more we spend on lifestyle the less we will have to invest in the market. Into the things that will bring us more money.

There are several different ways to you can invest:

  • Taking a class to learn new skills that will increase your value and salary
  • Buying an asset that will produce income for you
  • Investing in the stock market to earn dividends and capital gains

But it all starts with the cash flow.

You need money coming into your accounts in order to invest in those initial assets. The compounding magic happens when you can combine your investments creating wealth with you being able to earn money to buy more assets.

And nothing is more important that your money system. Your assembly line.

When money comes in from employment or customers it needs to go directly into purchasing more assets. The faster you can purchase assets the more wealth you will build.

One of the reasons that Wal-Mart is such a successful company is due to their ability to quickly open multiple stores. Efficiency.

The same should be true of your money system. Remove as much friction as possible between money coming in and then purchasing more assets.

Focus on what you can control.

When you purchase an asset like a stock, you do not have much control over it’s performance. So instead worry more about how much you are earning or growing.

I am a late bloomer. When I was going through school I did not really know what I wanted to be when I grew up. So it took me a long time to figure out what I was good at. And to some degree I am still figuring that out. But the whole time I was experimenting. Testing different jobs and businesses and assets to see which one clicked with me.

My investment account started at $0. And my first job was minimum wage. But I was determined to keep growing. And that is what happened. I gained more skills and kept learning. My income keeps growing as I continue to develop more skills.

Mastery is often just the ability to keep working at a craft. To keep getting a little bit better over time.

If you want to get rich master your cash flow.

For more great articles, check out the Harness Money Newsletter. It’s Free!

Published by Collin Harness

Obsessed with creating value and helping people achieve financial independence.

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