#1 Be focused.
You must keep your eye on the ball if you want stronger cash flow and higher investment returns. Yet, Tom often sees people turn their money over to someone else and expect that person to make all the decisions. That's crazy. Why would anyone care more about your money and investments than you?
That doesn't mean you have to spend all your time building your wealth. (See point #2.) But it does mean you need to be a focused, active leader in the process.
#2 Use leverage wisely.
We’re used to using leverage in our daily lives. Most of us don’t hesitate to call on friends and family to complete basic household chores and repairs. You might ask your children to mow the lawn or do the dishes—leveraging human resources to minimize your effort. Or you might ask a neighbor if you can borrow some tools to fix a leaky faucet—leveraging equipment to get the job done faster and less expensively than calling a plumber.
Take that same concept and apply it to your investing. Use technology and other tools to accelerate your processes and improve the quality of your analysis. Build relationships with customers, employees, partners and vendors who can save you time and money. Leveraging time, money, knowledge, contacts and technology will go a long way toward increasing your cash flow and returns.
#3 Reduce or eliminate your taxes.
Finally, Tom’s favorite way to increase cash flow and investment returns is to significantly reduce—or even eliminate—taxes and use that savings to make more investments.
When it comes to reducing taxes, don’t waste time looking for loopholes or other tricks. And definitely do NOT put yourself or your business at risk by breaking the law by underreporting income or recording phony deductions. Instead, do what the rich do. Take the time to find out what investments the government is incentivizing and choose from that list. You can find out about 7 investments the government is incentivizing by reading Tom’s book, “The Win-Win Wealth Strategy.” And to find out whether TFW Advisors® can help you reduce your taxes, book a call with us today!