Cash Is King
Here is a saying I haven’t heard in a while, “Cash Is King”.
The saying “cash is king” for most of us is equivalent to saying “don’t give up your day job”.
For me, I am very grateful to have a job. My job gives me cash flow, which allows me to pay the bills and keep my family in the lifestyle they have become accustomed to, while still allowing me to put a percentage aside for investing.
During my journey into becoming an entrepreneur, I was introduced to the analogy of two trains running on parallel tracks in the same direction.
One train represents your current life, complete with income from a job, pension or benefit. That train is on a track you don’t control. You could be shunted off anytime, in any direction or taken to a dead end. Wherever the track owner or governing authorities want that train to go, you either have to go too, or jump. Your destination is out of your control. We will call this the ‘job train’, which is in the here and now.
Just to be clear, if you are in a business you own that requires you to be there in order to make money, you own a job. You are still on the job train. You are still trading your time for money.
The other train represents the life you would like, with income from multiple automated investments or businesses that you have purchased or built, complete with the rights to build as much track as you need to continue your journey. We will call this the ‘opportunity train’.
The opportunity train is stopped on one set of tracks further down the line, loaded full of opportunities, waiting for someone to get it going.
The job train is rolling along the other set of adjacent tracks, catching up to the opportunity train.
To get from the job train you are on to the opportunity train you would like to be on, you have to add fuel to the opportunity train in the form of knowledge and investments. Get that train rolling down the adjacent track, getting more and more momentum (which equals cash flow) and increasing speed close to that of the job train.
When the job train catches up to the opportunity train, you will be able to safely step across and continue to build momentum and speed on the opportunity train, leaving the job train behind.
If you try to jump across from one moving object to the other while they are traveling at different speeds, chances are you are going to get hurt.
The reality of this scenario for most of us is the two trains are going at different speeds. When the opportunities come, we don’t have the knowledge or momentum/cash flow to step across and ride where we choose into the future.
So start building your investments and businesses while you still have cash coming in from your job, pension or benefit. Use a percentage of that cash flow to educate yourself, then create other income streams that get more cash coming in.
When you have as much steady income from your investments and businesses as you do from your current income, step across and take control of your future. When you own the knowledge, investments and businesses, you control them and the direction they go.
We live in the information age. It has never been so easy to automate income from the knowledge in your head.
In future posts I will share with you things I am learning that may help you jump from the job train to the opportunity train without getting hurt.