The Real Path to Wealth: It Starts with Cash Flow and Lifestyle
No two financial situations are alike. Everyone has different goals, abilities, and circumstances—which makes building a personal financial plan both essential and challenging. The hardest part? Navigating the unknowns of the future and understanding the many strategies available.

From experience, I’ve found that most people build wealth through one (or more) of three broad paths:
1. Paper Assets – stocks, bonds, mutual funds
2. Real Estate – rentals, flips, development
3. Entrepreneurship – building and owning a business
Notice what’s missing? A job. Employment provides income, but it’s not a wealth-building strategy on its own. It’s a funding source for the real engines of wealth.
We’ve been conditioned to equate income with success—spending to match our earnings, chasing status, and trying to “keep up with the Joneses.” But as The Millionaire Next Door shows, true wealth is built by acquiring assets, not appearances.

That’s why I encourage people to shift from “budgeting” to “Cash Flow Planning“. It’s not about restriction—it’s about awareness. Most people who say they can’t save $25 a month are shocked when they track their spending. Often, it’s small, habitual expenses—like daily coffee—that quietly drain potential savings.
Even small changes can spark momentum. Think of wealth like building a snowman: you start with a small snowball and roll it. The wetter the snow (i.e., the higher the return), the faster it grows. But wet snow is slippery—higher returns come with higher risk. That’s why understanding your risk tolerance is key.

Each wealth path requires a different starting snowball:
• Paper assets need the smallest—$25/month can get you started.
• Online businesses can launch for a few hundred dollars.
• Real estate requires the largest initial investment.
You can—and should—use all three. Diversification smooths the ups and downs. When one stream dips, another may rise. Just remember: always keep some assets safe and boring, and allocate risk based on your age and comfort level.

So ask yourself:
• Does your current cash flow support your lifestyle without debt?
• Are you willing to adjust your lifestyle to create investable cash flow?
• What are you prepared to do next?
Wealth isn’t about how much you earn—it’s about how intentionally you use what flows through your hands.

Need help figuring out a Cash Flow Plan?  That is what we are here for.  Just send an email.