Debt equals Death

Our Grandparents lived through it and learned the lesson that they took to their graves; debt equals the death when preparing for the future.

The Great Depression had survivors and even folks that did very well economically, but no one that was and serious debt made it through.

Cash flow is the formula banks use to grant debt with no consideration of how to prepare for a situation where cash flow slows or stops. The worse thing to count on is your current job, the next worse thing to count on is social security or a pension. These are NOT secure cash flow sources.

A secure cash flow source is one that people must pay you or suffer terribly if they don't. What kind of assets can you provide as a service to people whereas they would have to pay you no matter what happens to the economy?

The Arabs have found one called oil and have driven our economy with it. Food should be the next item but farmers have been slow to create a monopoly like the oil companies have to control supply and drive up demand. That may be changing in the next few years with corporations buying out our small farmers. Housing is the last item in that the rules and regulations have made it difficult to get a dead beat tenant out of your asset.

This sounds harsh but when push comes to shove, all people will fight to try and survive in a bad economy. If you don't believe that you need to read some of the stories about depressions in world history.

So what are you going to invest in that will guarantee cash flow and how will you get out of debt so no one has leverage to take that away from you?