I spent a large portion of today studying businesses that collapsed due to high, fixed costs. I studied why General Motors failed. I looked into the failures at Border’s and Barnes & Noble. The more I try to figure this whole investment thing out in the broader context of life and business, the more I realize: cash flow is the lifeblood of success.
It sounds extreme, but it’s the conclusion I’m coming towards: don’t have $200 in monthly cash flow to cover your food costs? Yeah, that’s going to make you miserable, although perhaps leaner. Don’t have $1,300 coming in to cover your rent/mortgage? See how much you like those “it’s the experiences … Read the rest of this article!