A portion of current income generates cash flow used to pay current bills.
A portion of current income is saved to pay for emergencies.
A portion of current income is used to pay insurance premiums, which in turn, are used to prevent catastrophic loss of income and wealth.
A portion of current income is invested for future wealth and future cash flow needs.
Artificially improving your cash flow by using credit or taking out loans (ie by NOT using current income) is extremely hazardous to your financial health, physical health, mental health and personal relationships.
The concepts of “passive income” and “multiple streams of revenue”, actually are begun with your current income.
ALL PERSONAL FINANCES ARE DEPENDENT ON YOUR CURRENT INCOME, YOUR JOB(S).
SMALL AND MODERATE IMPROVEMENTS IN YOUR CURRENT INCOME (a second job or a partner who contributes to current income) PARLAY INTO SIGNIFICANT CHANGES IN YOUR FINANCES NOW, AND FOR THE FUTURE.
THIS IS WHY DOWNSIZING, FURLOUGHING, WORK STOPPAGES, STRIKES, LAYOFFS, AND, IN GENERAL, LOSS OF CURRENT INCOME, IS SO SEVERELY HAZARDOUS TO ONE’S CURRENT AND FUTURE FINANCES.
Charles Tadros, M.D.
August 19, 2021
Saint Louis, Missouri