Episode 89: You’re Making Money, But Do You Have Enough Cash

Making money is one thing. Having enough cash to cover your expenses, handle problems, and take advantage of new opportunities is another key factor.In this episode of Strength in Numbers, Marcus Crigler breaks down how much cash a real estate entrepreneur should have on hand and why your cash position should be measured against your expenses.Listen as he walks you through the cash position hierarchy and the “float method” for building personal and business cash reserves.Enjoy the show!You’ll Learn How To:Determine how much cash you needUnderstand the different levels of cash reservesUse the float method to build personal and business reservesMeasure your cash position against monthly expensesWhat You’ll Learn in This Episode:(01:54) How much cash do I actually need to have?(02:41) The cash position hierarchy(03:24) Reaching the secure phase(04:28) 'Float method' explained for building cash reserves(05:38) The biggest pain most entrepreneurs go through(06:42) What to do when you have less than one month of cash(07:46) What to do with one to three months of reserves(08:38) When you reach three to six months' worth of cash(10:57) Moving from business cash to external investment opportunities(12:14) Set cash position goals quarterly(13:52) Measure cash against your expenses every month(14:11) Dedicating a resource to cash position forecastingWho This Episode Is For:Real estate entrepreneurs who are making money but still feel stretchedBusiness owners who want help with their financesAnyone ready to expandWhy You Should Listen:This episode gives you a simple framework for understanding where you stand, what you should focus on next, and how to build the cash reserves that give you more freedom and better options as an entrepreneur.Connect with Marcus Crigler:Website: https://beccfo.com/LinkedIn: https://www.linkedin.com/in/marcus-crigler-cpa-977a45b7 Facebook: https://facebook.com/marcus.crigler