Chemistry of Cash inflow.(1)
By Olabintan Olatunji.
There is a natural law to every physical occurrence in life. Continual cash inflow can only be guaranteed by total commitment to investment and blockages of unproductive cash outflow conduits. The ultimate formula for cash inflow is mi+mc =cf (Multiple Investment +Managerial Commitment =productive cash Flow). If you want a sustained wealth, you must clearly understand that you are not wealthy just because you earn a lot of money. You are only wealthy when your money works for you .To sustain an all time cash inflow, your main job must be to make money and then put it to work for more increased inflow. Let me share this with you : “Mike Tyson rose from poverty to become a highly celebrated star, he achieved great and unprecedented feat in the world of boxing and this earned him not only fame but millions of dollars. At a time Tyson was reputed to worth over $300millionUSD in the vaults but today, that same boxer is indebted to the tune of $24millionUSD,he was forced to declare bankruptcy and all he worked for went down the drain. He said of himself that, “when I had money, I was an animal so belligerent(an aggressive or truculence attitude). I lost all across board. My life has been a total waste”(culled from Success Trigger). Can you imagine that a once upon a time multi millionaire getting severely broke all because he didn’t put his money to work?”
Making money and draining it will only shrink your earning power and reduce your financial security rating. Recently I was daunted by the fact that many people make trickles of investment that is not proportionate to their earnings and they go about bragging, thinking they are sustained. If your per annum over a period of 3years is N3,000,000,00(Three million naira) and your investment portfolio is less than N800,000,00(Eight Hundred Thousand Naira), then you are a financial disaster waiting to happen. The simple logic is that you must have a quarter of your earnings in profitable investments portfolios.
Our attitude towards money is based on our distorted social values which rates materialism as idealism virtues. Many people now earn to consume on properties that can best be described as liabilities, e.g.(cars, designer wears, electronics, etc.)we consider these items as the ideal status booster of a working individual thereby converting our hard earned resources into diminishing returns. Money doesn’t increase when you are desirous to impress ; I was window –shopping in one of the world most patronized duty free chains and to my amazement I saw a designer suit which upon conversion cost about N250,000,00. Can you beat that? If not controlled, the human thirst for materialism increases in direct proportion to our earnings, so if you desire to impress, there will always be items on the liability quadrant beckoning for your attention.
To have a sustained cash inflow, there must be a complete paradigm shift and a conscious investment drive backed up with a delayed gratification mentality. It doesn’t matter what your financial standing is today what will determine where you will be financially in the next few years will be your attitude towards investment and not otherwise.