Revenue, Profit or Cash Flow - Vanity, Sanity or Reality?
Автор: Ann Wilson | The Wealth Chef
Загружено: 2019-10-24
Просмотров: 1859
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Are you focusing on the right things to create real wealth? Watch the video to discover the truth about what really matters.
Head over to this link to read the full article and other great resources for creating and living your wealthy life: https://www.thewealthchef.com/blog/va...
Our society often places excessive importance on revenue, those big income numbers that might seem impressive but can be utterly meaningless.
Revenue is vanity. You've probably heard people boasting about their six or seven-figure businesses, but what really matters is profit.
Profit is "sanity." It's the essence of a sustainable financial future.
Why? Because if you're not making a profit, your financial stability is hanging by a thread. It's like building a sandcastle too close to the waves; it won't last long. Your life is your business too, and if it's not profitable, you're likely using debt or eroding your assets to get by, which is not a recipe for true wealth.
But here's where it gets even more critical: cash flow is the reality check.
It's the flow of money in and out of your life. Irregular cash flow, with big inflows followed by dry spells or significant outflows during low-income periods, can create serious financial challenges. That's why cash flow planning is essential. It helps you anticipate what's coming in and going out over the next several months so you can prepare accordingly.
Where has your money focus been? On vanity (revenue), sanity (profit), or reality (cash flow)?
Perhaps it's time to shift your attention to freedom. Yes, freedom is the fourth focus point we're adding to the mix. Your freedom is created by your assets and growing your net worth.
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#thewealthchef
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