You can do anything if you don’t have money. Cash is so important because you can’t build wealth, invest and start business. Also you can not pay your rent, or your employees if there is no cash. Fred Wilson said:
The single most important financial metric for any startup company isn’t revenues, margin, headcount, or profits. Those are all important, for sure. But the number that matters most is the cash balance. Because cash is king.
Below, I want to highlight my four reasons why I believe that cash is king, yet:
We can establish how much are spending - The danger for our finances, it’s not spending on the phone that make the difference, but other things as how much you are spending for the lunch and coffee every day. Once you eliminate an amount of this cash of your account on a day, this can help you to save a good amount of money per month.
You spend more – According to studies(about 12-18%), people have a propensity to don’t spend with the credit cards. I can say this because when I make use of a credit card, usually I think twice before to consider to make a purchases.
You can make a good deals – Cash allows you to get some interesting deals. Can happens that people asking to traders a form of discount in order save a bit of money than the price listed. Usually, this strategy might not work at all stores, but it doesn’t hurt to try.
Companies are full of cash – A part the smaller companies that have lots of cash, there are other big companies that have nearly that much cash on hand including Apple with $24 billion in cash and equivalents, Microsoft with $20 billion in cash, and ExxonMobil with $36 billion in cash and cash.
