Myles of Investments

Read about my successes and failures. Learn from my experiences and gain insight without losing any cash!!!

Lesson: Catching a Falling Knife
Lesson: Currency Exchange
Lesson: Mutual Fund
Lesson: Paid to Wait
Lesson: Pricing in a Downturn

This is where you’ll find find my Blog. I will comment on the latest news relating to investing, real estate, and the financial markets.

Cashflow

Cashflow is king. Never forget this statement, as it will serve you for as long as you live. You don’t need a higher education to understand how to calculate cashflow, as it is basic arithmetic. If you can add and subtract you can figure out where you stand with respect to your cashflow situation. When you look at all of the money you make, and take away all the expenses you have, the amount of money you have left over is how much positive cashflow you have each month, and you can use this to save, invest, or spend. Read further into the articles in this section for ideas on how to maximize this amount, and for ways to invest it. If you do the math, and you are coming up negative each month, you are financially sinking. If this is the case, read this section on cashflow to find ways to get out of this situation, and start making progress in the right direction!

Know and understand this concept, and if you implement it, you will see immediate results. If you are considering an investment, and the numbers you are looking at show you that you will increase your cashflow, it is likely a good deal. If you are looking at spending or investing money, and it will decrease your cashflow, it is probably not a good deal. For example, when investing in a rental property, if the rent can’t cover all of the expenses of the unit, and it requires you to supplement the cost, then it is creating negative cashflow. You will lose money each month. This is probably not a great deal, and you are relying too heavily on a potential increase in property value later, which will compensate you for all the money you are losing each month. You’ll have to cover these losses, plus the real estate fees when you sell, and don’t forget about compounding interest on a potential investment that you lost while waiting for your deal to culminate. The deal may be a good one in the end, but in the mean time, it is making your life harder. It should be getting easier, or you aren’t getting richer.

Don’t forget that cashflow is king, and it is the most important investing principle to master. Spend most of your time working on increasing your cashflow and the rest will fall into place.