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By author Morgan Jassen on wieldsilver.com

2020-12-30 10:51

Learning How to Compare Cash Flowing Assets
One thing I learned from the "CASHFLOW® Classic (FREE)" game online (at richdad.com in 2020) is to calculate a ratio of cost to return to measure the value (positive or negative) of an asset or a liability.

For example use this ratio to compare the positive cash flow of a rental property, or the negative cash flow of credit card loan/debt.

Moving on.

Interestingly in my life one area I think of applying this to, in a knee-jerk fashion, is the cash flow of a new higher paying job vs. my existent job.

This same ratio comes to mind.

Similar to this blog post:
"Financially Investing in One's Own Employment Status" https://investorworker.com/2016/2016-12-09-investing-in-employment-status.html

In other words, if my current/old job pays 3,703 silver-grams* per month, and my new higher paying job pays 7,716  silver-grams* per month.

And that helps me know which job's salary is more valuable and how much effort is it worth trying to "buy" the new job.

In conclusion, I learned, freshly, how to compare cash flowing assets.

This blog post first published at https://wieldsilver.com/2020/blog/
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