When Cashflow Turns Negative

When I started writing this blog I thought I was doing pretty well with my money. I was due to have my credit card debt paid off in a few months and I was ready to start investing.

Most of my businesses had break even or positive cash flow monthly. I paid to join the Kiyosaki Rich Dad education program so I could go to the next level with my money smart skills. This course put me back into credit card debt but I felt the Rich Dad education would be worth every penny.

Well, how quickly things can change. Within 2 weeks of starting the Kiyosaki Rich Dad education program my tax bill came in twice what I expected, the timing belt broke on my diesel Jetta, destroying a perfectly good engine.

Suddenly my positive cash flow monthly was significantly negative. I was reeling from these events, but the final straw came when my property manager called and told me my renters had skipped. My only rental property has already been a challenge because of the economy and losing the renters may cost me the house.

So, how did I handle these setbacks? I cried. Yep, it took me 24 hours to digest this last blow and then I had a major meltdown. Unfortunately, my good friend and business partner took the brunt of it through absolutely no fault of her own. She handled it well. Everyone should be blessed with such a good friend.

Crying let off some pressure but did not make the problems go away. The saving grace is that I have been in this place before and I know this too shall pass.

My plan to regroup looks like this:

1. Pray – Not for God to rescue me from my mistakes, but for Him to guide, support and love me through the process of dealing with the fallout.

2. Cut every expense possible
– I will sell my car after it is repaired. This will give me a small amount of cash and save on insurance. I do have my 1 ton truck to drive. I have cut my direct TV to absolute minimum and there will be no eating out for a while. While these steps will not get my cash flow monthly positive, every dollar counts.

3. Increase cash flow monthly – Having several businesses allows me to increase my efforts when I get in financial trouble. I have to resist taking on more veterinary clients because this work will take me away from my efforts to increase my cash flow monthly.

This concept was one of the most difficult ones for me to grasp in my Kiyosaki Rich Dad education. Working harder on my S quadrant self employment job will not increase my long term cash flow monthly. No more casual business building with my Xango networking.

Many or the most successful leaders in the company came into the business with severe financial challenges. I will have to get busy and work harder and in a money smart fashion.

4. Seek help from professionals
– I plan to take full advantage of my Kiyosaki Rich Dad education coaches to help me figure out how to handle my rental property. It is hard to admit all the mistakes I made when I bought this property but now I know.

For many this kind of roller coaster financial ride may be too uncomfortable but for me I see it as a learning process. I have made many financial mistakes but each mistake has eventually brought me closer to my goal of having my cash flow monthly higher than my expenses.

Until I get my cash flow monthly where it needs to be I will still struggle with finances. The Kiyosaki Rich Dad education program has helped me understand this