Rich Cash Flow

So how do the rich manage their money? How do they achieve a level of wealth where they do not have to work if they choose not to? Those with the wealthy mindset adopt a ‘earn, save and spend’ habit of managing their cash. They set a specifi c target of how much they want to save every month, usually 15%-20%. They deduct this savings from the income they earn and spend the rest. Unlike those with the ‘middle class mentality’, the rich mindset motivates them to take their savings and invest in Positive Cash Flow Assets that will generate returns and appreciate in value. They would rather put their money in carefully selected stocks, mutual funds and businesses than to splurge on the latest LCD Plasma Television. Although they may buy a few luxuries to pamper themselves, their Positive cash fl ow assets far outweigh their Negative Cash Flow Assets. As a result, the additional passive income generated from their investments outweighs whatever expenses they incur on these ‘extras’.