The Money Podcast Contrarian Cash Management Secrets of Multi-Millionaires
Take your financial education knowledge and experience from people who’ve been there and made the money.
Rob shares 7 contrarian cash management strategies that people who are struggling with money don’t know but multi-millionaires see as normal. These strategies are about thinking differently to the masses to help you manage, grow and preserve cash to create wealth and capital.
KEY TAKEAWAYS
- Save for the recession well in advance
Most people, in a recession spend less and invest less but this creates a paradox where you can’t grow your wealth because you are restricting your spending.
You can incrementally and aggressively save liquid assets so that when the recession comes you can buy assets at depressed prices.
- Spend and invest when others are saving, save when others are investing
invest whilst asset prices are low and when asset prices are high and others are investing, hold on to your cash and wait.
- Cut marketing spending last
The first expense companies cut when there is a correction or things get hard is marketing because this is seen as a variable cost, not a fixed overhead.
People see it as discretionary but marketing is the most important part of any business.
- Preserve capital at all costs
Don’t spend cash on items that depreciate in value. Use the income from assets to buy things preserve the capital element and only spend the income elements.
- Don’t take money advice from skint people
There is nothing wrong with taking advice from smart people who have experience. Don’t take advice from skint people, there are millions of skint people out there and they are always giving advice, but these are people have never had money.
- You should be your own money advisor
Be your own independent financial advisor, your own money manager you should not give this responsibility to other people. Your own money management and responsibility to invest, to save, to budget, you should learn and master for yourself.
- The emotional stability of having money
The real benefit of having money and wealth is not just the experiences and material items or the security and freedom you gain, it’s the emotional stability, it makes you less volatile because you make better long-term decisions and less rash short-term ones.
BEST MOMENTS
‘If there’s a correction or a recession I’ll be able to increase the spend on my marketing to get the business my competitors are leaving behind because they are struggling’
‘You want to be ready for the recession and have the cash to burn’
‘So many people who are skint make rash short-term decisions because they are skint’
VALUABLE RESOURCES
The Money Podcast iTunes | Omny
ABOUT THE HOST
Rob Moore is the host of the UK’s no. 1 business podcast “The Disruptive Entrepreneur,” as well as an entrepreneur, property investor, property educator, and a holder of 3 world records for public speaking. He is also the author of 9 business books, 5 UK bestsellers, and the global bestseller, Life Leverage.
“If you don't risk anything, you risk everything.”
CONTACT METHOD
Facebook: https://www.facebook.com/robmooreprogressive/
LinkedIn: https://uk.linkedin.com/in/robmoore1979