Keeping money in the bank is the same as leaving money on the table. If you have enough cash to care of short and medium term costs, learn four ways of putting your long-term money to work.
- Let's say you have enough money…in your business accounts to cover…your short and medium costs for the next six months.…But what if you still have a lot of money left over?…What a great problem to have.…But just keeping money at the bank…comes with a few risks.…First, the money isn't growing, and interest rates…have been so low for so long,…and they don't seem likely to rise any time soon.…You work hard to earn that money…so it makes sense to put it to work for you.…Second, the temptation to overspend…or at least not be frugal is higher…when you have a large financial cushion.…
Overspending on things that don't directly…grow your business can be both distracting…and terrible for your long-term burn rate.…How can you put that money to work?…Here's four ways.…The simplest is to move some of the money…into a certificate of deposit, or CD.…First make sure you won't be needing that cash…in the near-term future.…With a CD, you need to lock the money away…and not touch it.…But for that sacrifice you get…a much higher rate of interest.…
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- Choosing a company structure
- Cash flow
- Borrowing money
- Investing and reinvesting
- Financial health best practices