Prioritize Investments

80% of people are in survival mode.
They are living paycheck to paycheck.
Once they have spent their paycheck, they are broke.

80% of businesses are in survival mode.
They are living payroll to payroll.
Once they have made payroll, the business is broke.

Broke people and broke companies make money to buy things. If I gave a broke person $2000 they would think to themselves what they can buy with the $2000. Often, it will be to catch up on bills. Or to splurge on something.

People who are “middle class” make money to improve their credit score (pay bills on time) so they can get loans to buy nice things, and keep up with the Jones’. They can also be in survival mode and over-extended due to buying things that give the illusion they are doing much better than they are.

Wealthy people (including owners of very successful dry cleaners) invest in income-generating assets that create cash flow. They would take that same $2000 and ask themselves what asset they can acquire that will give them more money in the future than the original $2000.

See the difference?

Instead of buying things that someone thinks they are entitled to, wealthy people invest in an asset that will give them enough cash flow to buy that thing with the cash flow while also keeping the original money, and if they do it right, the asset will grow in value too over time.

They have a longer time horizon. This is most motivating and easiest to achieve when you have a primary aim or grand vision. They know what cash flow they need to achieve their vision, and they will build towards that goal using delayed gratification instead of taking the guaranteed short-term satisfaction today.

Buy the vehicle that will deliver you the cash flow to buy the thing..... instead of just buying the thing.
That is how wealthy people and businesses operate.
And so should you.

Have a great week!
Dave