7 Pillar Series - Cash Management

7 Pillar Series - Cash Management

April 06, 2021

As a wealth advisor what if I said, I don’t care about budgeting and we don’t really do that with our clients. Thanks for joining us again this week in our 7 Pillar Series. This week we’re talking about cash management and cash flow. And one of the things that always get brought up when we talk about cash management, is budgeting. But we don’t like to talk about budgeting around here. It has too many negative connotations.

I don’t care where you spend your money. And the negative connotations are, “You can’t buy this.” “I can’t do that.” And it doesn’t get to the crux of the issue. Cash management is about ensuring that we know what your money is doing for you. Understanding that the money that’s in your checking account is for your monthly bills and your monthly spending. It doesn’t make anything while it sits there.

And so each one of the buckets you have – one for spending, a bucket for your emergency fund, a bucket for retirement, or for any other goals you might have. Each one has a different rate of return, each one is supposed to have more risk, or less risk, and do different things for you. And understanding how much you need to have in each one of those buckets is important, but we don’t care where you end up spending the money in your spending bucket.

We just want to make sure you’re filling your emergency fund, and your retirement bucket, and any other bucket you have for goals. And finally, we need to make sure that as we progress through, we start adjusting those long term buckets as they become more short term, and make sure we have enough cash available at that time.

And so, my question to you is, how much do you have in each of your buckets? And why? And if you don’t know, let us help. Give us a call, and we can be there for you. And then join us next week, as we talk about Philanthropy in the 6th segment of our 7 Pillar Series.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment Advice offered through Priebe Wealth, a registered investment advisor and separate entity from LPL Financial.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.