Think budget-conscious. Look for ways to solve your problems without throwing a lot of your hard-earned cash around.
Why not take advantage of a promotional two for one dinner at a nice restaurant? Or purchase products with your credit card, pay the charges off at the end of the month and get sky miles? Who couldn’t use that free airfare to take a great vacation to Hawaii?
There are four important principles to remember:
Even in inflationary times, cash is a dominating factor. Buy appreciating assets like gold, silver, a profitable business or real estate at a discount and profit from it with your cash and leverage. Then you have more cash in the bank to use as you reassess your next opportunities.
Continue to build your cash reserves and look for ways to make a little do a lot. Whether you have three zeros or nine zeros at the end of your savings account, make purchases as if you are on a tight budget – you’ll shorten your timeline to becoming rich. Don’t forget, when tax consequences are factored in, you need to earn more than a dollar to spend a dollar.
Cash is king and always will be. It’s more than a medium of exchange in our society – it affords us the ability to enjoy life. With deep pockets of our own, we will build a financial fortress around ourselves that will not only withstand the changes in economic cycles – but also profit from them.