Market Secrets – Investment Series – Cash Flow

Hi All,

I Welcome you to the MarketSecrets Investment Series – a YouTube video basedinvestment Series.

Here is the famous quote from the book “Rich Dad Poor Day”.

“Way to become rich is very simple. You need to understand the difference between Assets & Liabilities, and buy Assets”  – Though the quote is simple, lot of people don’t understand the difference between Assets & Liabilities, and they end up buying liabilities thinking that they are assets. (Eg: A Car/Bike)

What is an Asset? Things that Puts money in your pocket

What is a Liabilitiy? Things that takes money out of your pocket

Moving from Poor to Rich is Always Easy, whereas as moving from Middle Class to Rich is Always difficult. What to know why? Watch this video.

Link: https://youtu.be/XIAn46ZJb70

First Step in personal finance is to understand your cash flow, find and remove all the liabilities and start buying asset. Lets do it step by step

• Start tracking your each and every expense, maintain a consolidated report
• Start tracking every source of income (Even if it is just 1 rupee)
• List down your liabilities

Now

• Create a plan that would bring down your liabilities to Nil (Difficult if you have a housing loan)
• Create a plan to increase your income from each source (If you are getting 1 rupee a month from a source, plan in such a way that it doubles every 3 months)
• After tracking expense for 6 months, sit and analyze. Separate the needs and wants from the list, and reduce as much as you can from the items that falls under wants.

Click here to Download the sample Expense & Cash Flow Tracker