One of the Principles of Prosperity is to focus on cash flow as well as net worth when building your life plan for wealth. As we build wealth in our life this becomes more and more apparent. The velocity of money in your life and how it flows though an asset is more important than the flow of money to an asset. If you money gets stuck in an asset then it becomes unavailable to use in other areas of your life. The biggest example for most people is the amount of money that is tied up in your home. Here is an asset that adds to your net worth yet your flow of dollars is stuck in the asset and not flowing through it.
When building assets be sure to take a look at the implications of where the dollars will go and be sure to take a look at the opportunity costs that you are giving up when you tie the money up.
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