Wealth is Good
Cash Flow Is Better

How Our Approach is Different:  We Add Cash Flow

Most financial planning resources focus on net worth – your assets and liabilities – to measure your finances and define goals.  In fact, net worth is a critical measure.  But we add a measure for financial independence to the mix.  After all, that’s your ultimate goal, right?  You can have substantial net worth but if it doesn’t generate a sufficient monthly income stream to cover your living expenses (and debt, if you have any) then you aren’t financially independent.  That is, you’ll have to supplement the income from your net worth assets with salary income.

So in addition to the first 4 stages of the financial life cycle illustrated above – which are primarily defined by assets and liabilities – we add the Partial and Complete Financial Independence stages.  These last two stages are defined by your Cash Flow.

For more information about the Cashflownavigator™ Financial Life Cycle, and strategies to help you move more quickly through each stage, read our free e-booklet “Wealth Is Good, Cash Flow Is Better.”