Don't Underestimate The Power Of Cash On Hand As A Strategy

Many financial advisors would prefer you move all but your emergency fund into long-term investment plans. Often, these are structured for extended periods under the excuse of "long-term wealth building."

However... You also need to see your cash as a tool that allows you to wait for high-conviction opportunities that line up with your financial vision for your life.

Cash on hand isn’t just "idle" or "unproductive." It gives you options. It can be powerful and strategic. When market conditions shift, having liquidity allows you to act quickly, capturing investments at discounted rates.

This is why my minimums to invest are so low, even when I work with high-net-worth individuals... Because I see my own cash reserves as future opportunity, and so should you.

By holding cash and waiting for the "fat pitch"—an opportunity where you will be compensated well for taking risk—you maintain discipline and avoid distractions that don't actually fit your financial goals.

The ability to deploy capital when opportunity that fits your financial vision presents itself is what separates the truly wealthy from those chasing a quick buck.

It’s important to distinguish between holding cash as a strategic decision and doing so out of fear or uncertainty.

If you’re holding onto cash because you're afraid to invest, procrastinating, or unaware of market dynamics, then your capital is indeed not working for you, and inflation is eroding its value.

In this case, you’re not leveraging cash effectively as a strategic position, and your net worth may suffer from missed opportunities.