We hope that this blog update finds everyone enjoying their summer so far! It is indeed time for another installment of our monthly “Best Financial Advice I Ever Received” series, and this month’s spout of insight is Chris Miller, Decorah Branch Vice President. If you’re seeking a little help with how cash flow benefits business and individuals, or are wondering what the term “liquid” means when it comes to your financial life, read on!
Cash is king for both you and your business, and can help you stay liquid in case of emergencies.
“One tip of advice I have picked up over the years that consumers and business agree upon is cash is king,” Chris says, and for good reason:
- For businesses, cash must be readily available for the purchase of new equipment or space, and cash flow is one of the most important factors when looking at the long-term success of a company.
- For individuals, having a certain amount of cash that’s easily accessible and not hurt by swings in the market (like investments are) provides a means to pay for emergency purchases or bills.
“Being liquid demonstrates the ability to make and save money,” Chris says. “It also helps with down payments on cars, houses or equipment and can serve as a rainy day fund when the unexpected happens.”
For those that don’t know, “being liquid” refers to having the ability to quickly access funds without them losing value. This is another reason that “cash is king”: it’s easy to access from a checking or savings account, and doesn’t lose any value when you withdraw it.
Whether you are reading from a business or personal point of view, remember that cash and liquidity go hand in hand, and you always need immediate access to certain funds. If you need help determining how liquid you should be or have any other banking needs, Northeast Security Bank is more than happy to help you out.
We’ll be back with another post this month providing financial advice for newlyweds this wedding season. Until then, we hope everyone stays safe and continues enjoying their summer!