Turnover is vanity, profit is sanity, but cash is king for your business
Having liquid funds available can be vital because of the flexibility it provides during a crisis. While cash investments -- such as a money market fund, savings account, or bank CD -- don't often yield much, having cash on hand can be invaluable in times of financial uncertainty
"Cash is King” for families and individuals. Cash is also king when you run a small business or startup. It is not just an expression in investment portfolio analysis or big business, it is an expression that reflects hidden blessings that shape your overall financial health.
Despite the value of your assets, without an adequate amount of liquidity, you may run into many financial problems and may risk bankruptcy, loosing your assets and other potential opportunities.
As an old adage, Cash is King then and Cash is still King now. When people think of where to put their money, it is very easy to default to investments in stocks, lands, real estate, or retirement accounts. While these are all good investments and there are many good reasons to invest in them, It is also very important to always consider holding a portion of your financial resources in liquid assets.
When you have cash, you increase your ability to make more. There is money in liquid assets, Cash is still King
Reasons Why Cash is Still King
Lack of liquidity or poor cash is the main reason many individuals and businesses struggle financially. Your earnings may be very high and your business model may be excellent; however, you may end up spending all of your earnings or tying them up in non-liquid assets. Without positive cash-flow, you may be risking your overall financial health, especially in challenging
Cash is King in not only paying your bills faster, but also in saving on late fees and interest payments, maintaining a strong credit history and improving your overall financial health