📈💰 Optimizing Cash Management: Investing Excess Funds for Growth and Stability 📈💰
Dear BIVILLEPM Community,
Sometimes, “Where do we put our earned cash?” can be a more pressing concern than “How do we earn cash?” If the former is not addressed, we risk earning income only to lose it again to inflation and liabilities.
This post originated from the advice to always maintain a 3–6 months cash and equivalent threshold in personal finance. It prompted me to ponder what should be done with the surplus cash generated in both personal and business contexts.
Some of this surplus is typically allocated as fixed assets, while the remainder is designated as other current assets. The question arises: What percentage of this surplus should be invested?
Image By #GeorgeNWOGU
Our Answer: Image By #GeorgeNWOGU
As an “AI financial advisor”, I advocate for investing excess cash as the optimal strategy. This approach ensures that the cash generates value capable of outpacing inflation and mitigating devaluation. Here’s the list of current assets and fixed assets:
Current Assets:
1. Cash and cash equivalents (Surplus Cash Inputs)
2. Accounts receivable (Credit Offered to Customers)
3. Inventory (Goods in Progress)
4. Marketable securities (Stocks and Paper Assets)
5. Prepaid expenses (Upfront Payments at a Discount)
6. Short-term investments (e.g., Treasury bills, certificates of deposit)
7. Supplies (e.g., office stationery, cleaning materials)
Fixed Assets:
1. Property (e.g., land, buildings)
2. Machinery and equipment (e.g., manufacturing machines, tools)
3. Vehicles (e.g., company cars, delivery trucks)
4. Furniture and fixtures (e.g., desks, chairs, shelving)
5. Intangible assets (e.g., patents, trademarks)
6. Leasehold improvements (Upgrading Apartments or Leased Spaces)
7. Computer hardware and software (e.g., laptops, servers, operating systems)
#FinanceTips #MoneyManagement 📈💰 #BusinessFinance #FinancialManagement #AssetsAndLiabilities #CostControl #SmallBusinessTips #GeorgeNWOGU #BIZVILLEPM 🌐🚀
Best regards,
Engr. George (Chìsom) ÑWÒGU (MBA, PMP®️)
Motto: Humanity First, then Smart and Green. 🚀
My name is George Nwogu, a Senior Project & Planning Manager, COO and Global Trainer from Nigeria. I’m the Founder of Bizville Project Management Limited
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