Simply having an asset that increases your net worth does nothing to improve your cash flow situation. There are many people who are rich on paper but poor in cash.

When you have assets that generate cash flow for you, it can help you now and through retirement. Remember: Net worth doesn’t help you retire; cash flow does. Your net worth doesn’t pay the bills; the cash that comes into your bank account each month does. That’s an important distinction to make.

If you are selling options on your stocks, that is cash flow that goes into your income statement. It’s an important addition to your income statement that can transform your life. Listen as host Greg Arthur and wealth expert Andy Tanner discuss how to buy your first cash flow stock.