Blog

Definition of Momentum Investing Momentum investing is an investment strategy where investors buy assets that have shown strong recent performance and sell those that have shown weak performance. It’s based on the idea that rising stocks often keep rising for a time, and falling stocks often keep falling, because of market psychology and herd behavior.

Definition of Income Investing Income investing is a strategy focused on generating steady, reliable income from your investments—usually through dividends, interest, or rental income. Instead of betting on stock prices shooting up over time, income investors look for assets that pay them regularly. The goal? To build a portfolio that produces consistent cash flow without needing to sell assets to make money.

Quick Definition of Liquidity Liquidity is how fast you can turn something you own into spendable cash without losing much value. Cash in your checking account? Ultra-liquid. A rare trumpet from 1930? Cool… but not liquid.

The richest people in the world follow structured, repeatable systems that ensure their money works for them 24/7.

A checking account is a type of bank account that is designed for frequent use. Checking accounts are about accessibility and liquidity.

Cash-on-cash return is a rate of return used in real estate investments that calculates the cash earned on the cash invested in a property.

Digital vending machines are online assets that generate cash flow, whether that be interest, dividends, royalties, affiliate income, etc.

A balance sheet millionaire is an individual whose net worth, or total value of their assets minus liabilities, is at least $1 million.

A budget is a financial plan that outlines expected income and expenditures over a specific period, typically monthly or annually.

Liquidity is all about how quickly and easily you can turn your assets, like stocks, bonds, or even your car, into cash.

Market Capitalization is the total value of a company's shares of stock; it's an indicator of a company's size, and investors watch it.

Active income is the cash flow you generate by putting in your time and effort.

Passive income is money you earn without actively working for it.

Cash flow is a dynamic force that, when harnessed through strategic investments, can propel you toward financial freedom.