In today’s podcast, I will be talking to you about cash reserves in business.
I’d like to reflect on the famous quote “cash is trash”. I believe this is untrue. It’s true that cash in a bank account is a depleting reserve due to erosion by interest rates. But every business needs cash reserves.
This means you need to put your cash into the appropriate places at the right time. I use property, funds, stock markets, gold, and silver to ensure my cash reserves are increasing and not being eroded.
It is a good idea and standard practice in my business to have 12 months’ worth of cash reserves, just in case there is a problem. You’ll then be able to keep the company running long enough to create a strategy to increase the profit.
