When you start making more money, it’s not the time to start wasting it extravagantly or time to start showing off that you are now rich but time to reflect more on how to create more money and live a high quality life and comfortability. Money have wings and can fly away if not well-managed. What you do now determines the outcome of your tomorrow. The rich of today becomes richer tomorrow, the poor today is rich tomorrow because of how they manage their cashflow. What you do in the time of abundance determines how rich you become. There are three things to do when money start flowing steadily.
This is one of the best way to grow and compound your money over time to make you financially stable. With reinvesting your money into that venture of your choice. With due diligence done, your reinvested money makes you more richer and you worry less about money. You can buy Dividend stocks and reinvest the dividend paid to increase your shares and make more money on the long run when you sell for capital gain. When you invest into real-estate and it starts generating cash flow from the rental property, you can invest the cash into buying land or set up another rental property for cash flow too but once you sell that asset on the long run, you also become wealthy.
EXPAND YOUR CASHFLOW
Expanding your cashflow is when you have invested into more stocks or property and it start generating cashflow. You can expand your cashflow generating machine by making more money. It’s one of the key difference between the rich and poor. When the money starting flowing uncontrollably, they work out plan and strategy to expand their cashflow and make more money.
ENTER A NEW TERRAIN
A new terrain is a way to make more money and keep the cash flowing. You need to do your part by researching into that business or investment before allocating your hard-earned money into it. You need to know how they make money. How fast or slow is their returns and if it beats inflation to protect your money. Entering a new terrain can be that you are venturing into a new investment or business you entirely not into to generate profits. There are people entering into agriculture, forex, start-ups and many more new terrain that makes more money.
Knowing what to do with your money as it keeps flowing in matters and where to put it to compound and grow overtime matters a lot. If you waste your money today, you mismanage your finance tomorrow. If you struggle financially today, you might likely tend to poverty tomorrow. Manage what flows into your hands effectively for better wealth creation.