{"id":1048,"date":"2024-11-22T19:59:50","date_gmt":"2024-11-22T19:59:50","guid":{"rendered":"https:\/\/belbolcpa.com\/blog\/?p=1048"},"modified":"2024-11-22T19:59:51","modified_gmt":"2024-11-22T19:59:51","slug":"overlooked-financial-maneuver","status":"publish","type":"post","link":"https:\/\/belbolcpa.com\/blog\/overlooked-financial-maneuver\/","title":{"rendered":"Overlooked Financial Maneuver"},"content":{"rendered":"\n
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I\u2019ve noticed a recurring theme over the years, and it\u2019s more common than you would think. It\u2019s helpful to do this one thing, especially as a business owner, and I\u2019ll explain why.<\/p>\n\n\n\n

Because it\u2019s simplistic it is often overlooked, but I\u2019ll tell you why it is so important. The one overlooked financial maneuver is to set aside cash. Let me explain.<\/p>\n\n\n\n

Better Decision Making<\/strong><\/p>\n\n\n\n

When cash is tight it hurts your decision-making ability and produces a scarcity mentality. There can be small expenses that come about, and cause stress when it normally is not a stressful event. And if a much larger, unusual expense comes about then it causes an even higher amount of stress. Poor decisions are made when you are stressed and financial pressures.<\/p>\n\n\n\n

More Options<\/strong><\/p>\n\n\n\n

Cash gives you the ability to take advantage of better options. Options include: buying out a competitor or other business, a down payment on an investment property or large equipment, the ability to be more selective with choosing customers or clients, and more time off from your business.<\/p>\n\n\n\n

Ability to Take More Risks<\/strong><\/p>\n\n\n\n

Having cash is a good insulator when making mistakes. If you have extra cash, then you can easily survive a business decision that didn\u2019t turn out so well. You can also take greater risks because you have the cushion in case the risk didn\u2019t turn out the way as planned.<\/p>\n\n\n\n

Downside<\/strong><\/p>\n\n\n\n

The largest downside to having a lot of cash is that it gets eaten up by inflation. A few ways around this can be to put the cash in higher yield, risk-free accounts to earn more interest than a non-interesting bearing checking account, and to place no more than half in other very liquid investments. This way, you have the potential to earn interest and\/or capital gains without risking all of your cash.<\/p>\n\n\n\n

If you like what you just read, then don\u2019t hesitate to forward\/share with your friends, comment below, and\/or click like on LinkedIn!<\/em><\/p>\n\n\n\n

Make sure to subscribe to our weekly emails to receive practical business, financial and tax strategies! <\/strong>Sign Up Now!<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

I\u2019ve noticed a recurring theme over the years, and it\u2019s more common than you would think. It\u2019s helpful to do this one thing, especially as a business owner, and I\u2019ll explain why. Because it\u2019s simplistic it is often overlooked, but I\u2019ll tell you why it is so important. The one overlooked financial maneuver is to […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[2,3,90,247,7,8,10,12,13,15,218,16,18],"tags":[],"class_list":{"0":"post-1048","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-budgeting","7":"category-business","8":"category-debt","9":"category-employees","10":"category-expenses","11":"category-financial","12":"category-investments","13":"category-irs-resolution","14":"category-marketing","15":"category-new-jersey-tax","16":"category-real-estate","17":"category-retirement-2","18":"category-taxes","19":"entry"},"_links":{"self":[{"href":"https:\/\/belbolcpa.com\/blog\/wp-json\/wp\/v2\/posts\/1048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/belbolcpa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/belbolcpa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/belbolcpa.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/belbolcpa.com\/blog\/wp-json\/wp\/v2\/comments?post=1048"}],"version-history":[{"count":1,"href":"https:\/\/belbolcpa.com\/blog\/wp-json\/wp\/v2\/posts\/1048\/revisions"}],"predecessor-version":[{"id":1050,"href":"https:\/\/belbolcpa.com\/blog\/wp-json\/wp\/v2\/posts\/1048\/revisions\/1050"}],"wp:attachment":[{"href":"https:\/\/belbolcpa.com\/blog\/wp-json\/wp\/v2\/media?parent=1048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/belbolcpa.com\/blog\/wp-json\/wp\/v2\/categories?post=1048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/belbolcpa.com\/blog\/wp-json\/wp\/v2\/tags?post=1048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}