Critical cash is the lifeblood of your wealth. It’s crucial to have the ability to identify it, protect it and get it working for you. The bulk of your critical cash can be found in your:
• Prior tax-free gains earned from the sale of a house
• Future appreciation gains of current house(s) not yet cashed-in
• All retirement funds
• Any assets earmarked for long-term wealth and family protection
These are the largest portions of your wealth and should never be put at risk. They should always be accessible to see you through any of life’ unexpected surprises, expenses, and emergencies. More importantly for maximum wealth they should be constantly working earning compounding gains.
On the other hand, it’s also important to know which dollars of your wealth get the title of play money. This is cash you set aside for extras, for vacations to tropical islands, for that really fast red convertible, or for that birthday present you want to give a loved one but haven’t until now been able to afford it. Your play money is a small percentage of your total income and money that you can afford to spend frivolously.
Play money is just that. It is for you to play with and spend as you see fit. You don’t have to think responsibly about it, if that $1000 leather coat catches your eye and you can afford it, it’s yours. Your play money could be lost altogether without any major consequences in your family’s financial safety.
We’ve all heard it said that, “Knowledge is power.” Identifying the important components of your wealth and having a plan for its health guarantees you financial success. You’ve got to systematically recognize and separate these parts of your monthly income. Critical cash is most important and your play money is, obviously, your least important.
To understand and know which is which and how to protect your critical cash, read Chapter 6 of Stop Sitting on Your Assets. If you just want to get a taste of the book, grab the no-cost preview version that lets you read or listen to the entire text of Chapters 1, 2, 3 and 15.
Yes ... it includes the audio for free!
Get started on building your critical cash today. Get your own full copy of the Stop Sitting on Your Assets bestselling hardcover.
No time to read? Multi-task and listen to the full version digital book that includes complete audio along with full color illustrations ... in both English and Spanish. What a great way to get this valuable message. And maybe even learn another language in the process!
Funny … but it used to be that only the very wealthy had the luxury of having two categories for their money. Won’t it be nice when YOU have two categories: your own critical cash and your own play money?
Send your friends and family a no-cost GIFT preview copy of Stop Sitting on Your Assets and let them get started building their two money categories, too.
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