Visio Talk

Whether you have your own business or you are talking about your personal financial situation, what is more important lots of assets or lots of cashflow?

I think if we are going to have a genuine crack at this question we need to clarify it a little. What is more important how? Let us assume we mean more important from the point of view of sustainable financial success and wealth.

Right. So we got that clear. What is the answer. Well, in truth the answer is that both are important. Although, if I had to choose one I would probably choose Assets. Because if you have assets, whether they are physical, skill based, intellectual property or whatever, all you need to be able to figure out is how to make them make you money. (Think Google, before adwords)

Both, however are important from the perspective that if you have assets you can gear off them (borrow against them) to invest and grow your wealth. But, if you have no cashflow you cannot meet the repayments.

Having said that, it is still possible to gain credit without actual income. Via things like low doc loans, where you do not have to prove your income. And then you can use the freed up funds to invest in cashflow streams.

Spread the word via StumbleUpon