Robert Kiyosaki says: "If you took all of my money away, I would have it right back. I don't really care about money. I mean I do but why worry about it because I can make my own money all the time."
Most people invest for capital gains but the rich invest for cash flow. Investing for capital gains is like gambling, you invest your money and hope the price goes up. For instance, many people buy a house hoping they’ll be able to sell it for more money later. In the meantime, they have to pay their mortgage and home expenses. Money goes out of their pocket. It becomes a liability.
The rich invest for cash flow, that it's money flowing into your pocket on a continual basis whether you're working or not. It is your money working for you. And generally, cash-flow investing is based on fundamentals that aren't as susceptible to market swings like capital-gains investments, which means that even in bad times, money still flows into your pockets.
Additionally, cash flow is what is known as passive income, which is the lowest taxed type of income. This is not always the case with capital gains taxes, which vary depending on the type of asset you've invested in and how long you've owned that asset. In some cases, the taxes can be very high. Different investments produce different results. The question is, what results do you want?
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