“Not all cash is created equal” – this is the title of chapter 4 of the book Forever Cash. This chapter exposes the fact that, although all $100 bills look the same, the way that they were obtained makes a big difference once they are in the pocket of their owner.
Temporary Cash is where you get paid multiple times for only having worked once. It is far better to make money this way then by trading your time for cash (hours for dollars).
What are some ways that you can generate some Temporary cash flow? Have a look at some ideas below.
Sell a book or a song online:When you produce a book (whether non-fiction or a novel) or a piece of music, you can make it available for online sale or download using a portal like amazon.com or iTunes. These storefronts are visited by thousands of people every day and let you keep the majority of the sale price from each item sold.
But why do we say that this item is temporary cash? Unless you create a truly timeless and appealing work of art (like an Agatha Christie novel or a Beatles song), chances are that the demand for your product will slow down to a trickle and everybody that wants what you have made will eventually have it. While you can expect to see some significant cash flow in the beginning, the checks aren’t likely to last forever.
Sell an item with owner financing: You can sell any item – like a house, a piece of vacant land, or even a vehicle – with owner financing and thus create some cash flow. Owner financing is where you accept payments for the item and save the buyer the trouble of having to go out and look for a loan (which may be especially useful in the case of a buyer with bad credit). In turn, you can add a certain amount of interest to the purchase price and get more money in the long run.
Offer a membership for a website with updated content:If you have a website with quality content and that is regularly updated, then you may be able to charge visitors to give them access to certain parts of the site. Many people are willing to pay for a monthly membership if they feel that the content is truly valuable. For example, there are websites that prepare weekly sermons for busy church Pastors. These Pastors are happy to pay a small monthly fee to have some help in preparing inspiring messages for the people who attend the services in their church week after week. Although paying members for any given website may not keep their membership active forever (the average website can expect each client to pay membership dues for an average of 3months) a significant amount of Temporary Cash can be generated in the meantime.
Once you have invested some time and money in one or more Temporary cash assets, what should you do with the cash flow that comes in? The goal should be to save the majority of that cash flow for reinvestment into bigger and better assets. Temporary Cash is better than One-Time Cash (trading time for money), but it is still not as good as Forever Cash, where you get paid forever after having worked only once.
So save up the money you get from your Temporary cash investments and put it into a Forever Cash asset. That way, you will never have to trade your time for money ever again.