No one cares more about building your wealth than you. This week, I’m sharing 3 ways you can increase the cash flow from your investments.
#1 Your Focus
Increasing your cash flow requires your focus. You cannot expect higher cash flow by turning your money over to someone else. Building your wealth must be your primary focus if you want to achieve higher cash flow.
This doesn’t mean you have to spend all of your time building your wealth – that’s where #2 comes in to play. It does, however, mean you must be involved and your wealth building must have your attention. You cannot simply hand it over. No one cares more about building your wealth than you.
Leverage is the use of borrowing time, money, knowledge, contacts, and technology. All of which can increase the cash flow from investments.
If you look at applying leverage in a general sense, we do it all the time in our daily lives to increase time, human resources, effort, money, tasks, contacts, and so much more.
For example, when you are moving, you call family and friends to help you lift, carry, and transport all the heavy furnishings and all the boxes that have been packed to the final destination of your new house. In doing so, you have leveraged human resources (physical strength and effort), time, and machinery (vehicles) in order to minimize the effort that it would have taken you, had you done it yourself. Or, you call a moving company to do it all for you, leveraging even more of the effort it would have taken you.
Leverage is a normal part of our lives. Think about how you can use it to increase your cash flow.
#3 Tax Reduction
This one is my favorite. One of the fastest ways to increase your cash flow is to reduce your taxes.
Then you can use that increased cash flow to make additional investments. The tax law favors investors and business owners so continuing to make investments means you continue to reduce your taxes.
There are many who miss the opportunity to take advantage of the tax benefits the government has in place. These tax benefits, when applied correctly, make it very possible to legally reduce your taxes and build tax-free wealth.
Increasing your cash flow requires your commitment. You must commit to taking action.