Why Monthly Cash Flow Trumps Savings?

Have you ever saved money for retirement, but still felt worried about money?

Could saving for retirement cause you to go broke?

Why is cash flow so important?

Some of these questions might have struck a cord with you. If so, good! Powerful questions can lead to powerful results.

So which is most important? Focusing on monthly cash flow, or focusing on long term savings?

To answer this question, we need to look at cause and effect. Retirement savings is not designed to provide you monthly cash flow today. You save it, usually in places where you’re punished for touching it before retirement, with a hope one day that it will provide cash flow.

On the other hand, what if we focused more on providing more monthly cash flow today (thru increasing income and decreasing unproductive expenses)? What would happen then?

If you had another $500 – $1,000 per month, what could you do?

  1. Pay off more debt…to free up more money?
  2. Pay your bills on time and not stress as much from having too much month at the end of your money?
  3. Save more than you are today?

Cash flow IS THE CAUSE of more savings and less debt!

Most financial pundits will keep telling you, while pointing their judgmental finger of scorn at you, to pay off your debts and save your money. Thanks a lot “experts!” Did all that knowledge help you figure that out? How has that “education” helped our people so far? How does that help us to have more money today? It doesn’t, right? It’s like telling someone to eat less to lose weight.

Rather than trying to save what little you have in financial products, like 401k’s and IRA’s, where you have little to no access to money today, why not look for ways to use that money to increase cash flow?

Ideas could include:

  1. Pay off loans
  2. Invest in income producing assets, such as your business, real estate, or other dividend paying investments
  3. Build savings to increase peace of mind and help you avoid using high interest credit cards
  4. Take an education course on how to create more cash flow today,
  5. Get additional training or education to justify an increase in your compensation


The possibilities can go on and on.

Remember, the wealthy don’t stuff money inside 401k’s and IRA’s. They are using that money to create assets that increase their wealth exponentially.

Cash flow creates more options, and having more options creates true financial freedom!

However, so often, I’ll see people sacrificing opportunities to create greater wealth today because they’re “supposed to be” saving for retirement.They keep saving, paying off debt, but still feel like they’re stuck in a rat race. Do you know anyone like that? Do they seem happier to you?

Basic common sense would tell us if we focus on having more freed up monthly cash flow today, we can save more for tomorrow anyways. Cause and effect!

It’s simple, more effective, and a lot more fun to have a life where you have more income than expenses. You are free to choose how you best use that money to better your life, AND your family’s life!

So what are your thoughts on this subject?