🎯 Goal: Understand assets that create cash flow and their role.
You understand cash flow is money flowing in steadily (interest, dividends, rent); cash-flow assets give income even when not working, and reinvesting grows them faster.
Let’s explore
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Cash flow is money flowing in steadily (savings interest, dividends, rent).
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Owning cash-flow assets gives income even when you are not working directly.
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Reinvesting the cash flow grows the asset faster thanks to compounding.
Practice activity
🤔 Name an asset that can create steady cash flow for its owner.
Worked example: A room for rent creates monthly rent — a cash-flow asset. The owner has steady income even without working, and can reinvest that rent to grow further.
Quick quiz
1. Cash flow is?
→ Money flowing in steadily
2. Cash-flow assets give you?
→ Income even when not working directly
3. Reinvesting cash flow helps?
→ Grow the asset faster via compounding
4. Monthly room rent is?
→ Cash flow
5. A house rents for 5M/month; a year brings?
→ 60M
🎯 Real-life mission
Distinguish one thing that creates cash flow from one that only costs money.