Which is better? High cash flow or high net worth? In the short-term high cash flow is better. In the long-run it’s the high net worth that will give you your financial independence.
Cash flow is what you’ve got after you subtract expenses from income. You pay the bills and hopefully you have something left over.
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There are plenty of rich people who constantly worry about money. But, in general, if you save diligently you are going to eventually find yourself at a point where financial worries are relatively rare – you’ll find that you are in a state of financially happiness.
The feeling of being financially happy isn’t just for the wealthy. If
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Here are some steps you can take to protect your cash flow during tough times. It may be a job loss, or large and unexpected medical bills. Whatever the cause, it threatens your income stream or raises your expenses. You’ll need to take drastic measures to restore your cash flow as much as possible.
Eliminate Nonessential Spending
One
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Older homeowners have more options to tap into the equity in their homes: reverse mortgages. The key to using a reverse mortgage is to understand how they can help your cash flow, often providing income to offset expenses in retirement, or enabling additional spending for a vacation getaway or recreation vehicle.
With a reverse mortgage, instead
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Families resort to a variety of means to stay afloat when they have a severe cash flow problem. Some resort to pricey, often risky alternatives. Some deplete their retirement accounts, tapping 401(k)s for both loans and hardship withdrawals. Some fast-cash options allow homeowners to squeeze equity from their houses – without the burden of monthly
Continue reading Cash Flow Problems: Taking Extreme Measures to Resolve