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Have you ever had conflicting thoughts about cash savings? You'd feel better with more savings, but you're not really sure it's a winning financial strategy. Savings is pure magic. Within its seed is infinite and tremendous potential. This article will help you see and unleash the power of savings to accomplish your financial goals.Savings is a value of the ultra-wealthy. Having savings – liquid, accessible, safe cash – is critical and relevant, even in today’s economy, even with boring returns.
But because the hard pull of the media, financial messaging, and what everyone else is doing points the opposite direction, saving often becomes snubbed and overlooked.
Savings certainly doesn’t have the most electrifying connotation, I know.
Because today's interest rates are at an all-time low, saving money seems wasteful. It seems you’re putting your money out of commission, letting it just sit on the sidelines.
In addition, financing is cheap and easy. It quickly becomes a go-to source of capital when you don’t have cash of your own.
To top it off, it seems like investments get higher returns than savings do, and that you’ll end up ahead if you invest instead.
But, could this be only part of the story?
Where Savings Fits into Your Cashflow Creation System
Building a stockpile of savings is to help you weather months of tight income or unforeseen expenses will move you light years ahead towards peace of mind and financial stability. But it’s just one small step of a greater journey of building time and money freedom.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with savings, insurance and legal protection. Here, you’ll create the right canopy of protection in your financial life. This second stage encompasses all aspects of Privatized Banking, a key savings and capital deployment strategy that secures your access to capital, maximizing your control, by allowing you to be your own banker.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
The Big Why of Savings: It Protects Your Mindset
As we embark on this series about savings, we’ll walk through the reasons why having cash is so meaningful, from the perspective of the wealthy. It becomes apparent that they’ve thought differently than everyone who’s currently tethered to “average” status. It's enough to take notice.
The wealthy know how to build financial wealth. But they recognize that true wealth is a richness of mind, body, spirit, and relationships. Their goal is a more fulfilling quality of life in every category of their life, today and in the future. They meticulously attend to creating a life that sup...