Cash is Trash & Savings Are For Losers

A few high profile people that I’ve worked with have recently said you should get rid of your cash. However I believe you should be balanced. It’s not wise to have all of you money tied up in assets however it’s also not good to have all of your money in cash. Listen to this episode of Money to find out why this is and how you can have a good balance.   KEY TAKEAWAYS Don’t take “cash is trash” at face value. Cash isn’t trash, liquidity means you can buy underpriced assets, you have protection from regular shocks and versatility to pivot and invest. If you have a lot of money tied up in cash, inflation will erode it. The return on it probably wont be very good and your money won’t be as protected as a wrapped asset. It’s important to have a percentage of your money as cash so that you are covered and prepared for any shocks. For example 25% of your profits or 10% - 15% of your sales is a sensible amount to save depending on how much you can afford. When other people get blind sided and knocked out by the recession you can buy their assets with your cash. In preparation for the recession which I believe is coming within the next 3-5 years I don’t think you should take as big of risks as before and I don’t think you should plough all of your money into assets. I find that the more cash you have, the more emotionally stable you are and the less cash you have, the more volatile you are. Cash is not trash, it just devalues quicker than assets. Saving is not for losers but it’s just if you have all cash and no assets, you’ll have slower appreciation. You can get to a certain level where it’s probably less productive to have cash.   BEST MOMENTS “Cash gives you speed.” “It’s wise to save cash.” “most companies go bust because of cash flow issues not profitability.” “Keep cash reserves in the form of savings, stocks, cash” “Managing cash and liquidity and savings is vital.”   VALUABLE RESOURCES Rob More - Money   ABOUT THE HOST Rob Moore is the host of the UK’s no. 1 business podcast “The Disruptive Entrepreneur,” and “The Money Podcast” as well as an entrepreneur, property investor, property educator, and holder of 3 world records for public speaking. He is also the author of 9 business books, 5 UK bestsellers, and the global bestseller, Life Leverage.   “If you don't risk anything, you risk everything”   CONTACT METHOD Facebook - https://www.facebook.com/robmooreprogressive/?ref=br_rs