Cash Flow and Leverage

The most important word in business and investing is the word cash flow

In other words, if cash is flowing into your pocket from an asset, that's very smart

But if you're continually buying liabilities where the cash is flowing out of your pocket, that's not too smart

So a rich person has better control over their cash flow, and that is a very important skill to have

In more layman's terms, it's called the basic life skill of money management

Are you able to manage to have your cash keep flowing in, or do you manage to have your cash flow out?

It is a basic fundamental life skill, and going back to it again, it is simply a choice that you can make

Nobody else makes that choice for you

The second most important word, according to my rich dad, was leverage

And leverage is the ability to do more with less

The rich are not smarter. The rich just think a little bit differently