Stelios the founder of EasyJet is saying that cash is king. Having a nice big pile of cash in the bank is a good thing. Many a millionaire has become rich by taking loans out from banks, but others have also become wealthy using their own money, from using their own cash. This is the path I want to take as I don't want to have to beg for money from the bank.
One area where I differ from lots of financial advice, is that I like to keep a lot of cash in the bank. Many books say that cash loses its value, but as we have learned from the financial crisis of 2008, having lots of cash close to hand when times get rough, allows you to take advantage of great opportunities. If you are a cash buyer for things like cars, or real estate, or many other things, you have a chance to negotiate for big discounts.
Obviously, cash should be kept in a reputable British owned bank. At the moment, safety of your savings is more important than high returns. I don't even know what the current interest rate is on my savings, and I don't care, as I can sleep at night knowing my cash is safe with a trustworthy, solvent, British bank.
Many investments such as stocks and real estate, cannot be turned into cash immediately. Having lots of ready cash lets you pay off unexpected demands for money. Cash lets you pay bills and make quick investments. Cash frees you from bank loans and bank interest rates. Cash is king.
My goal is to always keep at least 20% of my net worth in cash.
Theo Paphitis the multi-millionaire entrepreneur, says one of his most important lessons is to always keep a big pile of ready cash available for immediate use.
Always plan to have thousands of pounds saved up in the bank to keep you afloat financially, because cash is king.
No comments:
Post a Comment