CASHFLOW INVESTING is the game of wealth creation! It's how the rich get richer by getting their money to work hard for them.
A common misconception is people thinking they are investing by buying a piece of property/ land/ object, and hoping to sell it at a later date.. That's not investing, that's Speculation. You are hoping the value will appreciate so you can make a profit.
That's not what investing is, especially if what you are looking for is Financial freedom.
To achieve financial freedom, your Goal is to invest in Cashflow producing assets that pay you returns on a recurrent basis.
So it becomes clear that while real estate investing is a thing, flipping (i.e. buying a selling higher for profit) houses is not investing. Even if you make a profit, it's a one off payment. It is not a stream!
Rental Income is investing. Because you earn a monthly or annual income from that property.
Another example is buying lands and holding for price appreciation.
If you buy land in Ibeju Lekki for N600,000 and wait for 5 years to sell it at N10,000,000, that is speculating.
It's not a bad way to flip money, but its not a cash flow asset. You see the slight difference?
When you're speculating, you hope the price can go up so you can make profit.
Investing for freedom is looking for ASSETS you can buy that will pay you consistently for the rest of your life.
Examples of these are Rental Properties and Dividend Paying Stocks.
All you need to do is park a percentage of your income into an Investment Savings Bucket strictly for purchasing Cashflow Producing Assets.
This is a long term strategy that will surely pay off but I discovered a formula to accelerate this process.
On my next post I will share how you can ACCELERATE your journey to building wealth and achieving financial freedom.
Comments 'YES' if you got value out of this post and will be looking forward to the next one. 💥