Cash flow is the magic behind wealth building
The movement or flow of cash into and out of a business is cash flow. Just as fuel flows through an engine, or glucose flows through a biological organism, cash flows through a business.
To be financially healthy is to have more cash coming in than going out. This could be more fash flowing into your possession as an individual. This could be more cash flowing into the possession of your family as a group. This can be more cash flowing into your organization or business. As long as the cash flowing in is increasing and the cash flowing out is decreasing then you've got a healthy situation from a financial perspective.
Cash flow is the magic because it makes everything else possible. If you're seeking investment and you have good cash flow then people will want to invest in you, or your business.
A business takes cash as input, uses that cash to produce some product and or service to satisfy the demand of a customer, if the customer is satisfied then it's a positive transaction because value has been created, and the rest is profit for the business. So if a business has a lot of cashflow which shows a lot of money coming in, but products are going out, customers are satisfied, and not a lot of cash is coming out, then this is a sign of an efficiently run business operation.
Its important to have multiple streams of income as well. If you are dependant on just one type you are in danger of it collapsing. If you have multiple at least if one goes then the others can keep you afloat.
What are some easy streams of income to get into in your opinion?
Easy or hard depends on what you have. Income from what I now understand is based on how much wealth you already have (this determines how much value you can bring). A company, a platform like Steem, or anything really, is going to want you to bring value to in. In exchange for you bringing value to it, you can be rewarded in something. This can be money, this can be prestige.
By just asking the question you asked, you progressed the discussion, which added value to my blog post. As a reward I will upvote you. See how that works?
The more wealth you have or build in yourself through personal development, the more you can bring to everyone and everything else. So if you read more, if you exercise a lot, if you make a lot of friends, if you just are in the right place at the right time, you may know something before the rest of us do or better than the rest of us, and so now you have something we want and maybe you can get paid for that?
If you're someone who already has done a lot of personal development, who already has a lot to offer, then figure out places where you can add a small fee and there you go, a new income stream. This isn't to say it's easy to do, nothing comes without sacrifice. It is merely to say that over time, you can secure one income stream, then two, then three, then you have more than you can track, and from there it becomes about cash flow, how much revenue are you bringing in a month? $1000? $5000? $10,000? And how much are you spending on ads or professional development?
I look forward to SMTs. SMTs will allow any of us to begin building our wealth in ways we cannot currently imagine. Steemit allows us to currently build our wealth by adding value to the Steem platform. We currently achieve this by generating content, or by contributing to the discussion, or by curating. I do all of these three tasks each day.
At one point in time I averaged 6 blog posts a day. Now I post around 2 or 3 blog posts a day. Even when I posted 6 a day, I would comment 10+ times a day to build discussions around each of my blog posts. If I never post another blog again I can comment on the blog posts of other more successful bloggers and make sure my comments are of the quality of a strong blog post. If I never contribute content again I can buy Steem Power and curate to generate income of some amount each month. If Steem were to go away then I have other avenues to produce income, in the crypto space and outside of it.
Wow! This part should be another blog of its own.
Good answer.
If you can add something to the party then you should get paid with regard to that value. Steemit is a great example of the more that you put in the more that you will get out of it. Connections are hugely important as well. Knowing the right people and being in the right circles is half the battle as you have access to knowledge and power that other people don't. This is a huge head start on people growing from scratch.
If one of my friends join the site now, I can help them start and not make the same mistakes that i did at the beginning. I would also boost their posts with a few votes or resteem if the content was decent. Things that I did not have access to.
This is what I've been doing for my dad, and his blog is starting to do really well. He was complaining at first because he started off slow, but everything comes in time.
Right and I admit that. When it comes to crypto due to my background and initial knowledge I had a huge advantage in this space. This is just dumb luck that I happened to be studying cryptography when Bitcoin became a thing.
Some were luckier than I was by far because I took my time getting involved. But I admit that the timing aspect is luck. Also because I got involved early my name at least on Steemit is more well known than some fresh new person who never posted before. That said, there are some who have way more wealth than me, either because they took more risk than me, or have more skill in a key area.
Dan Larimer? He has much more wealth than me and it's no contest. At the same time he took much more risk than me and has programming skill which even I can't compete with. So it's not just luck but also decisions we make which determines a lot. If Bitshares would have failed there would have been no Steemit, and for Bitshares Dan Larimer put his name and reputation on the line, took money from other people, and he had his seat to the fire trying to achieve something great. Did I take that kind of risk even though I was in the same field at around the same time? No I didn't. Even if I would have, it doesn't mean it would have gone as well for me.
So to build wealth requires both luck, taking risks, and having something initially to bring to the table. The luck aspect we do not control at all. The taking risks we do control but maybe not all of us are in the same position to take them. What we bring to the table depends on how much personal development and sacrifices we made in the past, such as education, or spending hours and hours writing code, or studying reference code, or reverse engineering stuff, all of this takes many hours, years of time.
I know C++, so do a lot of others, but to create something like Graphene or Steem requires more than just knowing C++. That is sort of my point. To create something like that requires dedicating 2 years of your life (I know because I've seen the process first hand multiple times), and the first year is mostly research and planning while the second year is bug testing and fixing bugs, and implementing. It took Dan Larimer from 2013 until 2018 to finally get to where he is right now and it took Vitalik Buterin from 2014 to 2018 to get to where he is.
2018 if SMTs come along and if we get EOS, will be quite interesting. Finally people like myself will be able to do stuff that previously only Dan Larimer and a select few could do. This is a very good thing for the ecosystem.
Love the idea you presented in this post, I'm a huge advocate and fan of cash flow management when it comes to both business and personal. Many people don't realize that having more money is not necessarily the key to wealth, having lasting and reliable income stream(s) is the key to wealth.
Love this as well, super meta to the discussion and a great way to show the "provide value and get rewarded" system of Steem! SMTs are also very exciting to me, I've been brainstorming some ideas, but I'm just generally excited for the attention and functionalities that they'll bring to Steem! The times are very exciting! Thanks for sharing this and I love the thread that it sparked, what a great conversation!
Make this a blog post! That was an awesome comment, here comes part 2! haha
I really need to look into SMT's, I have a few ideas floating around in my head. And just reading your comment made me want to take some of my experiences and package them in a way that could possibly help some people out. Might be some late nights coming up for me, hard to give up steady work when you don't have other steady income.
There's not much easy money for anybody really. My plan would be to use my wage as a base. When i have paid off my mortgage i will buy another house and rent it out to cover the mortgage on that one and repeat.
Crypto is one of my long term plans. I have a portfolio of a few small pieces but I hope to see STEEM hitting a hundred dollars at some stage. I love the site so enjoy trying to accumulate more anyway. I love to write and dive into learning new things so the site is great for me.
Shares with dividends are great. Don't have any myself but would hope to pick up some in the future when i have the money. You get scheduled payments and if the stocks are good then they should gain in value at the same time.
It depends on where your skills are. If you don't have specialized skills it just comes down to handwork. I only work in a shop but am grafting as hard as i can now so that i will be comfortable while im still young.
Ya, I feel like picking up new skills is a great way to find new income streams, I'm enjoying writing here and might try to write a few other places at some point as well. I'd like to remodel my basement so I could air bnb it too, that'd be sweet. Also looking into other online ventures. I'll check out your blog
Exactly. Put in the work now and set up a few different areas like air bnb and steemit. Anything that can earn you profit is money that you can use to earn more. It's just like on the site here. It's so hard to grow at the start but as you do it gets easier and easier. Money makes money.
Exactly. You have to get the ball rolling by sacrificing a lot but once you get it rolling it's a snowball effect. Wealth literally compounds upward.
Just every day add to your wealth. If it's Steemit, well try to get more followers every month. I'm approaching 6000 followers and I'm happy about that. I want 10,000 followers by 2019. If I can get to 10,000 follows I feel like I can expand into new business areas and not just blog. That is the thing, it's about bringing enough value to the lives of followers that when you expand onto new stuff they will follow you.
It doesn't take 1 million followers. If you have 10,000 followers when Steem doesn't have even a million users doing well. If Steem goes mainstream then what?
That would be the idea. The people on here now are just the first wave of adopters. When the site goes mainstream and STEEM worth a hundred dollars, which i believe it will, accounts with 1000sp will be viewed as big fish.
If their are 100 million users on the site it will become very hard to gain more sp as you will need to get a lot of votes to get the same rewards as we are now. You are in a great position with 6000 followers and it is somewhere i would love to get to in the future.
At the moment i have 500sp and it took months to get there. The plan now is to hit 750sp by the end of this month and 1000sp by the end of march. Thats the goal that i have set myself and it is achievable with work and time. Writing and commenting. By doing this i will gain more followers making the gains easier as i go along.
I love learning new info and diving into the crypto world so i would be doing this even without the rewards but i am competitive so having goals suits me to keep up the effort.
When SMT's come into play i think that they will be a game changer online.
Looking forward to seeing how they expand the STEEM brand.
I'm shooting for 1500 this year, but can always hope for more. All I can do is keep producing content I think will be of value to people and networking with comments and discord. Thanks for the motivation you two.
Passive income technically is easy but you need enough wealth in the first place to do that. There are patents, copyright, royalties etc. It is also possible to have resources without money, for instance if you have reliable friends who will let you stay with them then it's as if you've got more than one home. At the same time if you share your home with your friends then they have more than one home, and so none of you have to worry about being homeless at least not for too long.
There are all sorts of systems which can be in place but the point is they all are based around reciprocity and respect. If you can earn enough from Steemit, say if Steem goes to $100 which I really think if SMTs take off it will, then you may have enough from that to leverage passive income.
Truth! Nuff said!!
In business perspective, there are top 4 cash-flow according to Robert kiyosaki that base on how important it is through micro and macro economics, and believe to be valuable to most individual:
1- Big business- ex. Amazon , Apple, Google...............
2- Real state - ex. Trump tower, House Rental, Mall .........
3- Stocks- ex. Amazon part shares of ownership.........
4- commodities- ex. Gold, Silver, Guns, the latter isn't neccessary :D
Great points.
From a finance perspective, a lack of cash flow can also signal some questionable financial accounting. Enron had great accrual basis (aka "GAAP") earnings but lacked healthy cash flows, many earlier Enron bears pointed this out (and they ended up being severely correct).
Aside from the govt, @dana-edwards do you think there are individuals that can control the cash flow of an economy?
Sure, if you're a company or developer of a platform with its internal currency.
Dealing with cash flow issues is most difficult when you are starting a business
Same thing here in Steemit..... more you do, more you will receive.
thank you @dana-edwards
POC:More positive work u do,the more u receive
Steemit is flawed honestly. The big flaw is there is not enough diversity in what you can do. You can blog, curate, or be in politics (a witness). Blogging is not something which I see lasting for the long term at least for me. Curation I see becoming completely automated sooner or later. This means Steemit has to expand the foundation of opportunities for participants to add value to the platform.
We heard about SMTs many months ago. Where are they? I think we need a developer update about now. A developer update could restore confidence. The ecosystem has to continue to grow.
They need to expand on what we can do.
Agree.
You have support from a generous steemian. I like itVery good post. @dana-edwards
cash flow require proper decipline
5 years from now. staking coins vs dividend stocks? which way should i go?
Why not both? I don't see why a person would have to choose but I'll say that to do staking requires a much greater level of expertise. You basically have to be an information security expert to do it. If you get hacked then it's just gone. So I would say staking would only make sense if the yield is between 7-10% and up and if it's lower then I'd go with stocks due to the adjustment made for the level of risk and effort.
Dividend stocks you buy and never have to think about it again. Staking is actually a job, you're a system administrator.
yes the risk factor for staking is big. i should take this into account. im 24 and im spending alot of time building my passive income portfolio. what are some stock you like? i like JNJ and clorox for long dividend growth!
Absolutely, cash has always been king. I know someone that has the business name CIMECO. He pronounced it see minko When asked how he came up with that name, he said it's simple...CIMECO stands for "Cash In Must Exceed Cash Out"
very good friends, really cash flow must always be our guard to stabilize expenses and income. if the expenditure is greater than the income, get ready is we will decline or may be out of business.