The Cash Cow Strategy
It's very, very simple. From now on, before you spend any more money on anything, before you jump into an investment opportunity, before you sign a deal for a new car or a new house or condo, before you put another cent on your credit card, before you borrow another dime, stop for a moment and consider the cash flow implications of the thing. Ask yourself these questions:
- Is this a cash cow?
- Is this a cash pig?
- Is there a potential jackpot later on?
If you do this from now on, you will transform your personal finances. You just might find that you'll significantly decrease your stress level as well. If you embrace this concept, it has the power to change your life for the better. I know because it changed mine.
Let me explain.
If you look up the definition at www.investopedia.com here is what you'll see:
A business, product or asset that, once acquired and paid off, will produce consistent cash flow over its lifespan. This term is a metaphor for a dairy cow that produces milk over the course of its life and requires little maintenance. A dairy cow is an example of a cash cow, as after the initial capital outlay has been paid off, the animal continues to produce milk for many years to come.
That would be a good thing to have, agreed?
Think about the things in your life that provide cash for you on a consistent basis.
What do you think your biggest cash cow is going to be? Your job? Maybe your RRSP? Perhaps your investments? What about a rental ...