WealthBoy - Latest Comments in Improving Cash Flow vs. Accumulating Wealth

Re: Improving Cash Flow vs. Accumulating Wealth

Tony — Wed, 19 Dec 2012 20:33:56 -0000

I generally agree with the post except for this: If you are hell bent on paying off your debt (all of it), the $600.00 extra cash flow for the next 20 months (longer technically cause the vehicle still remains paid off) by paying off the car could be used every month to rapidly pay off (down) the higher interest rate debt. By doing so the interest on the higher rate debt would be a lower dollar amount due to the principal reducing fast. Also you would wind up paying everything off faster by using your CASHFLOW this way.

Re: Improving Cash Flow vs. Accumulating Wealth

Canadian Car Loan — Sat, 04 Aug 2012 17:14:36 -0000

This article is something to think about. I will borrow your suggestion and see what good it would bring to improve our finances.

Re: Improving Cash Flow vs. Accumulating Wealth

share tips — Thu, 21 Oct 2010 02:40:24 -0000

As good as the "Rich Dad, Poor Dad" book is, Robert Kiyosaki's game "Cashflow" really helped clarify the most important concepts. I use the computer version. Given my time constraints with my business, I find it easier to set aside time to play it periodically. Even though it is a simplistic view of how the world works, and is heavily biased towards real estate, I found it extremely educational. As a side note, I majored in business in college, but there is very little I learned from my courses that I feel increased my financial intelligence. That has come primarily from studying books like "Rich Dad, Poor Dad," and "Think and Grow Rich." Do not underestimate the power of self education!!!

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Re: Improving Cash Flow vs. Accumulating Wealth

Bad Credit Auto Loans — Tue, 03 Aug 2010 11:26:34 -0000

I agree, I think the mental aspect of this decision outweighs the negligible monetary gains.

Re: Improving Cash Flow vs. Accumulating Wealth

boracay island philippines — Fri, 23 Oct 2009 00:36:43 -0000

I always pay personal loans on time so that I won't have problems regarding it. Now I know that I did a positive thing in paying my loans on time.

Re: Improving Cash Flow vs. Accumulating Wealth

Citibank credit card — Tue, 15 Sep 2009 07:54:22 -0000

Paying high interest rates first can help you pay your debt wisely but still it is better to pay everything though it may be the highest nor the lowest interest rates still it will affect your credibility.

Re: Improving Cash Flow vs. Accumulating Wealth

marianaws — Tue, 31 Mar 2009 08:08:05 -0000

i agree with "pay down your loans with the highest rates first." cause i have a good experience by doing that

Re: Improving Cash Flow vs. Accumulating Wealth

WealthBoy — Wed, 24 Sep 2008 14:37:38 -0000

For many, improved cash flow indeed does provide a sense of security even when it is to the detriment of net worth. I think it helps to be informed when making such decisions by realizing the long-term cost and developing a good view of the big picture. In the grand scheme of things, 20 months isn't a long time to finish paying off an auto loan and in month 21 cash flow would improve by $670 vs. $600.

Re: Improving Cash Flow vs. Accumulating Wealth

David — Wed, 24 Sep 2008 14:26:16 -0000

While I agree in principle about paying down highest interest loans first, the "mental" satisfaction in this case of not having car loan and not having a $600 outlay of cash each month for a car, could supercede any thoughts on interest rates. If this was me, I would pay off the car with the money and put the rest towards the house. A $600 reduction in monthly costs is too much to pass up for a $70 or so savings each month on a mortgage, at least for me. Great post