A BEGINNER’S GUIDE TO WEALTH – INTRO AND THE DIFFERENCE BETWEEN CASHFLOW AND CAPITAL GAINS/CASHFLOW vs. CAPITAL GAINS FINANCIAL WEALTH FOR BEGINNERS
I want to be wealthy. I want to start a business. I don’t want to start a business to be wealthy but recognise that it is part of the process. Writing about this experience will be a stress debuster as I will not only be able to articulate the challenges I face and what I am going through better, but I will also have clarity in several areas of my life.
I will never go into full-time employment again meaning I can now focus on full-time entrepreneurship starting from being Self-Employed. I have been profoundly influenced by the work of Robert Kiyosaki, New-York Times Bestselling Author (and All-round Bestselling author) of Rich Dad, Poor Dad the story Robert tells about his two Dads – his biological Dad, Ralph who was the Head of Education in the state of Hawaii and his best friend, Mike’s Dad who became very wealthy. This powerful account of the lives of the two Dads illustrated the differences between the rich and the poor in terms of mindset, actions and attitudes towards money, wealth and financial education – themes I have the honour and opportunity to explore here.
I read the book at 17 and ever since it has completely changed my life – the only book to do so after the Bible, of course!
The subject of finances is quite topical and as I am on Universal Credit I see as a topic that needs to be duly addressed. The process of sharing this experience will add to the depth of knowledge I have developed in this area through my time in FinTech and the Financial Services industry, pet projects and so on. Let’s begin.
I watched this video by Kim Kiyosaki about the difference between Cashflow and Capital Gains. Capital Gains is the profit you make from immediately selling an asset or investment vehicle – profit actualised or realised. Cashflow on the other hand is recurring income. Passive income. The money you make from customers who regularly buy your products or services without additional input from you.
For example, if you sell books online everyday that is cash flow. Why? Because cash or money is continuallyflowing into your pocket. It’s money in your pocket all the time. When I got into debt I realised that part of the problem was that there wasn’t any cashflow coming in. There wasn’t enough cash flow to cover the debt that was being accumulated.
So eventually, I dipped into my Savings cleared the £794.98 debt on 17th April – Thank God! Now when I was initially confronted with the debt I begrudgingly and erroneously signed up for Universal Credit and so that’s the next chapter on my financial journey – Amen!
I’m saying Amen because it is an opportunity to learn about and grow with money. I can now really put into practice the principles I learned from Rich Dad, Poor Dad…business, entrepreneurship and financial education.
Even interviewing Business Owners last year I found that taxes and the law was a big headache – one I am willing to face and learn about. I decided and learned at 14 that I wanted to be an entrepreneur, now I get to live that dream. There will be ups and downs but I suspect this will be an exhilarating journey.
I want to be rich and I am taking full responsibility on this extraordinary path to greatness.–If you have any questions kindly let me know otherwise thank you for your patience and have an amazing weekend.
Many thanks with the kindest of regards,
–More about Christiana Imafidon (Author & Online Mentor and Learning Facilitator)
Guinness World Record HolderCherie Blair Foundation Mentor Alumni
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