13 may 2010. To control cash flow we first need to know what cash flow actually is, how it works..What is cash flow? Why is it important to control your cash flow?
The words speak for themselves. Cash flows in and out. For most people cash in, to earn money is no problem. I can only speak coming from the context I am living in. In the Netherlands even if you earn an income of 30K euro per year, it means that over time, a working life of 40 years, someone has earned 1,2 million euro. The only thing is we all spend it as well.
How is it posssible we haven’t learned to invest? There are two things. Nowadays we get more buying signals then people in the middle ages got in their whole live. We have evolved from citizens to consumers and that is what we are now, we are consumers.
Then there is the fact that since the Romans people are trained to be good soldiers and since Frederic the Great of Prussia also to be good employees.This is called th Prussian system. We needed to be obedient, dummed down, so we could be influenced easily. One thing we needed to be prevented from is thinking for ourselves. The government hijacked our schoolsystem,to train us according to their own agenda. In the seventies we saw ERISA in the US and the 401K and in Holland we got something similar 25 years later when our Deputy Minister of Finance decided to get rid of the VUT and prepension plans. So now pension plans are gone and people are pushed towards the stockmarket to see to it that their pensions will be taken care of in the future, although they don’t know anything about the stockmarkets. So this “conspiracy” between the government and the banks and insurance companies has resulted in banks and insurance companies legally supported by the legislator to take our money. You could say they are stealing from you supported by the government.
In his book Who Took My Money Robert T. Kiyosaki explains how this works and who is taking our money. To begin the IRS, then the banks and insurance companies. Did you know that most people work 5 months per year for the tax authority and they earn their money by working which is the highest taxed income instead of letting their money work for them to create positive cash flow from investments which is taxed much lower in most cases.
So do you think it is important to learn to control your cash in and out, so you control your money instead of the government and the banks and insurance companies?
Tell us what you think.
Source: Robert T. Kiyosaki, The Conspiracy Of The Rich, The Eight New Rules Of Money.