Cash is King (or Queen!)

Cash is King (or Queen!)


My father always told me, “Emily, everything in life is easier when you have a little cash on hand.” I have learned over the years that there is a lot of wisdom in that piece of advice. Cash really is King (Or Queen)!

The very first question I ask my prospects when we sit down for our initial conversation is, “How much cash do you have on hand?” It really does not matter if they want to talk about retirement planning or whether they have enough life insurance if they have no liquidity.

One of the greatest stressors in America regarding personal finances is being overextended. People who live paycheck to paycheck never quite get ahead because they do not have a cash reserve.

When the unexpected happens, such as a broken refrigerator, or a very large medical bill, people without any savings begin to panic. Their knee jerk reaction is to use credit cards to pay for these types of emergencies. However, this is a reactive approach to managing your household budget rather than a proactive approach.

I want to encourage you, my reader friend, to be proactive with your personal finances so you are prepared for any unexpected expenses. If there is one thing I can guarantee you, it is that Life Will Happen! If you have at least 3 months’ worth of living expenses in cash, then life is much less stressful. If you are self-employed, work on commission only, or have any uncertainty about your ongoing employment and income, then I recommend you keep at least six month’s worth of living expenses in a cash reserve account.

Friend, before you focus on any other savings goal, make sure you have a proper financial cushion. This is one of the fundamental ways to change your financial life from stress-filled to peace-filled!