Cash Management Strategies for Wealth Building

The money guy team strategically manages cash to maximize wealth and seize unique opportunities.

### Effective Cash Management Strategies for Wealth Building
* 💰 The Money Guy team emphasizes the importance of **managing cash effectively** through all steps of financial operations, including using cash for **deductibles and emergency reserves**.
* 🏦 The speaker maintains extra cash reserves to support payroll and real estate management, highlighting the **need for liquidity** in business operations.
* 📈 Cash can create unique investment opportunities during economic downturns, allowing savvy investors to **acquire undervalued assets** when others are **cash-strapped**.
* 💵 Currently, the speaker favors **money market mutual funds** for their **superior returns** but remains flexible to shift funds to **high-yield savings accounts** when rates become favorable.
* 📊 The strategy is not to alter cash holdings based on fluctuating interest rates but to **stick to a well-defined financial plan** that aligns with individual **goals and risk tolerance**.
* 🔍 The speaker advises against market timing, advocating for **consistent investment practices**, such as **automatically investing 25% of income each month**.
* 💡 Regularly reassessing cash management strategies is crucial, as **small adjustments can lead to significant long-term financial benefits**.
* 🚀 Ultimately, the goal is to ensure that **money works harder than the individual**, paving the way for **successful wealth accumulation**.

[Music] all right BR. We've laid out a ton of options, a ton of different ways that you can manage your cash and maximize your cash. But let's answer a question that people really want to know: What are you doing? What does the money guy team, how do we think about managing our cash? What is our current strategy? Well, I mean, look, you guys know I use cash. It really is all three steps of the financial water of operations. I'm using it as step one, highest deductible covered. I'm using step four for my emergency reserves. And I told you guys we have a lot of people counting on us, in the fact that we run payroll, we have businesses, we have this real estate that we're managing. So I'm also keeping extra cash in my emergency reserves for that. But then I'm also keeping cash for that step eight abundance goals, just in case, just like Warren Buffett does it. You know, a lot of people don't talk about the unique opportunity of cash, is that when everybody else is without cash, it

creates some tremendous value propositions where you can buy stuff that other people just don't have resources, even though there's now been a disconnect from what the value of an asset is versus what people are having to sell it because it's a fire sale in the economy right now. If you have cash when no one else does, it is a super wealth-building super strategy that a lot of people just don't take advantage of. That's why you see Warren Buffett. You see I laid it all out in the millionaire mission on how I've seen this work for my clients, for myself, and others. You too can take advantage of this. So I'm I'll go ahead and tell you I've already spilled the beans a little bit. I'm currently still all about the money market mutual funds because they're maximizing and paying the best. But I know without a doubt, and that's why I didn't close any of my high-yield savings accounts. I just took them down to some Bare Bones levels. There will come that crossover point where the

high-yield savings accounts will start paying more, and I'm going to move the funds that I have in the brokerage account from the high money market mutual funds over to the high-yield savings accounts. I would encourage you just to pay attention to the rates, be proactive, and maximize that wealth-building opportunity with your cash. Now, here's what we're not doing: we're not changing our plan, even if high-yield savings accounts pay more than money market mutual funds. We will change how we're implementing the plan, but it's not going to cause us to hold more or less cash. We're going to hold an appropriate amount of cash based on the goals that we have, and we're not trying to time the market. We're not trying to say, Ooh, okay, rates are going down; now I'm going to throw my money in equities. Oh, I think rates are going to go up; I'm going to pull my money out of equities, and I'm going to put it in cash. We're going to maintain asset allocations that make

sense for where we are in our financial journey that makes sense for our unique time horizon, risk tolerance, risk capacity, and we are going to maximize and optimize the asset class of cash, but we're not going to affect the overall plan that we're implementing for our financial situation. And I love that you put on there, Don't try to time the market. I mean, this is not taking away from always be buying. I mean, I will tell you, when you're investing 25% for the future, that's just automatic for the people, guys. That's just happening without a doubt every month. That's part of your automated wealth-building strategy. What we're talking about is don't mess up the timing of that. We're talking about how you use extra cash and optimize all opportunities that come your way. If part of the plan is to hold cash, we want to make sure that you're doing it in the best manner possible. So, if you have not revisited how you're navigating, how you're managing your cash, we would encourage you to do so because those

Little decisions today can have huge impacts over the long term, and I love that this pays respect to that. Without a doubt, your money should have the opportunity to work harder than you can with your back, your brain, or your hands, and this is a great way to start.

How The Money Guy Show Manages Their Cash

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The Money Guy Show

The Money Guy Team's Cash Management Strategy

The Money Guy team uses cash for multiple purposes, including covering highest deductible costs, maintaining emergency reserves, and funding abundance goals.

Keeping extra cash during economic downturns creates unique investment opportunities.

The team currently prioritizes money market mutual funds for maximum returns while maintaining some high-yield savings accounts.

Maximizing Wealth with High-Yield Savings Accounts

High-yield savings accounts are starting to offer better rates, prompting a shift of funds from money market mutual funds.

The focus is on being proactive and maximizing cash wealth-building opportunities without changing the overall financial plan.

The strategy involves maintaining appropriate cash levels based on goals and avoiding market timing for investments.

Optimizing Cash Management in Your Financial Journey

Maximizing and optimizing cash as an asset class is crucial, without disrupting the overall financial plan.

Consistent investing, such as automating 25% of income for the future, is key to wealth-building.

It's important to revisit and optimize cash management strategies to make the most of available opportunities.

Small decisions made today can lead to significant long-term impacts.

It's important for your money to work harder for you than your own efforts.

Investing wisely is a great way to start making your money work for you.