How can you find confidence in an age of uncertainty? The answer might just be cash-confidence. If you’ve been with me long, you know it’s not cash that’s king, it’s cashflow. Yet sometimes things out of our control happen that limit our cashflow and our access to cash. And that’s where cash confidence comes in.
Under “normal” circumstances, I recommend having about 6 months of expenses saved, that way you have the confidence to live your life, even with surprises. At times like these, it feels more prudent to aim for twelve months. Things are uncertain, and saving will be your friend. One way to boost your savings, and thus your confidence, is to be economically independent (AKA, having income outside of your day job). Passive income investments.
If you’re an investor, you know that no income is ever truly passive, yet this passive income typically comes from outside of your business. And between these two steps—12 months of emergency cash, and income independent of your business—you’ll have a lot of confidence to tackle the marketplace and continue to crush it.
So what do you do if you’re in a situation where 12 months of savings, or even independent income, feels unattainable? I’m happy to tell you that it’s not the only path to cash confidence.
Focus on Your Biggest Asset
Dan Sullivan, my coach, taught me that cash confidence is not necessarily based on the money that you have. Although a stockpile certainly helps, your real cash confidence comes from your ability to solve problems and produce value in the marketplace. This really hits the nail on the head, because when you’re a solution-focused person, you’ll naturally make yourself one of the most valuable people in the room. When you can consistently solve problems for others, you’ll feel cash confident because the cash will follow. Don’t forget that you are your number one asset, and now is the perfect time to focus on leveling up.
Because for some of us, the best thing we can do right now, is to focus our time and energy on solving some the problems people are facing. There’s a whole new scope of needs in 2020, and innovation is key. Consider the dangers, and the opportunities, that we’re facing today.
Even if your arena is in real-estate, there’s a way for you to focus on the needs of your tenants. In fact, there’s no better time to open channels of communication and build relationships. Your first phone call to your tenant should never be, “Hey, your rent is late.” And that’s your first time on the phone with them, you’ve already made an error.
At the heart of it, we’re all looking to create a better future. That’s what we as humans, odd as we are, do—looking toward tomorrow in the hopes of progress. How can we be better scholars, better spouses, better friends, better bosses, and healthier people?
In our own lives we find certain people more valuable to us depending on our own pursuits. Perhaps someone who models a healthy relationship, or is a successful entrepreneur, or promotes a certain level of fitness. Whether it’s people we see in our everyday lives, or influencers and entrepreneurs, we look up to others as models of our own futures. These are the mentors that we choose to take us from who we are now, to who we could be.
Just as you have these aspirations, so do the people around you—and you can help them. This is another idea that Dan Sullivan espouses; beyond trying to help others build bigger and better futures, we have to be innovative to do so. And innovation follows when we have KASH—knowledge, attitude, skills, and habits. Once you have these principles in place, you uniquely position yourself in the marketplace where you’re no longer competing with others. How you adopt these things for yourself is up to you, and that’s will eliminate any competition naturally.
Our thoughts become our actions, and our actions become our habits. And those habits will make us more skilled over time. And the combination of this pattern will uniquely position you in the market, giving you cash confidence. Never forget that you are your number one asset, and as such, you should invest the time in yourself to become exactly who you want to be.
Including Your Clients
Where I think things really transform, is when your clients become involved in the problem solving process. It’s no longer a transactional relationship, but one where each person has a role in the innovation. These clients, who feel as integral to your operations as you are, will become your biggest promoters and supporters.
Remember the four freedoms: freedom of time, money, relationships, and purpose. By helping people achieve those four freedoms, you can gain cash confidence by becoming a person of such immense value that you always attract cash to yourself. Then, the other pieces of the puzzle can naturally fall into place.
And if you’re interested in learning more about Cashflow Investing, I’ve compiled 21 Basic Cashflow Investing Strategies. For more than two decades I’ve studied millionaires and billionaires, and interviewed over 500 successful investors and wealth experts. You can grab the 21 Cashflow Investing Secrets here.
Live your Freedom, Live Your Legacy, On Your Own Terms,
M.C. Laubscher is a husband, dad, podcaster & Cashflow Specialist. He helps business owners and investors create, recover, warehouse & multiply cashflow. You can learn more about exclusive cash flow strategies in M.C.’s new video series at https://www.yourownbankingsystem.com/
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