Check this out!

I know I've mentioned it before, but here's a direct link to Robert Kiosaki's book in progress: The Conspiracy of the Rich.




The latest chapter, Ch. 7, begins the discussion of "ok, now what?" that we have all been feeling. The most important point he makes is the difference between capital gains and cashflow. Most people invest with capital gains in mind: profits you make when something goes up in value. Think stocks, real estate, commodities. But these types of investments are completely dependent on how the market moves. If the value of your investment drops, then that's it. You lost money. (Unless you were shorting a stock, but that's a different conversation)

Investing for cash flow is different. Cash flow is money that comes into your pocket no matter what the market does. For example, selling a house for a profit is capital gains. A one time payment that can only happen if the value of your house goes up. Owning a house and renting it brings cash flow. That rent check will come in whether the house's value goes up, down or sideways.

I LOVED getting this reminder, because, with all the focus on what's going on in the market, I'd almost forgotten that there is another, smarter way to invest. One that Jeremy and I will eventually get into, though when is a bit up in the air.