002 - The Psychology Of Cashflow
- You MUST have a cashflow plan, before you have an investment plan.
Game Plan
- Every month
- In Writing / Typing
- TOGETHER - be on the same page
How a cashflow plan affects your investment plan
- A cashflow plan includes both savings AND investment.
- Without savings, people draw from their investments at terrible times
- Savings protect your investments
- [ ] THINK LONG TERM
Why don’t people have a game-plan?
- They don’t want to know how broke they really are.
- They literally don’t know how.
- They don’t like to admit that they are not winning.
- They think they don’t have to.
They don’t want to know how broke they really are.
- Don’t be like an ostrich
- If you are not winning with money, you will never win if you don’t have a starting point
They literally don’t know how
People are not taught how to create a game-plan in schools.
How to do it:
1. Start with your income at the top of the page
2. List ALL categories that need to be paid - regardless of the order / priority in which they should be paid.
3. THEN categorise.
4. THERE MUST BE ZERO LEFT OVER
They don’t like to admit they are not winning / They think they don’t have to
Winning is relative to your own goals.
People sometimes think they are winning because they earn a lot.
- If you control your cashflow, you determine your destiny.
- It is not about the planning process, it’s about the execution.
- YOU CANNOT INVEST IF YOU DON’T HAVE A CASHFLOW PLAN - RISK EXPOSURE
