Omar ZenhomAward Winning Entrepreneur. Founder of The $100 MBA & WebinarNinja.

How Financial Cushions Give You Personal Power

27 Dec 2024 · 1 min

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This content was created by Omar Zenhom. This content was uploaded by Omar Zenhom. This is a YouTube video titled "How Financial Cushions Give You Personal Power" (created 2024-12-27T14:50:00+00:00). It contains a short spoken segment in which a single speaker explains the benefits of holding cash in a weak economy — increased bargaining power because borrowing is expensive when interest rates rise, the ability to act quickly on opportunities, and capacity to invest in acquisitions, hires, equipment, or other business needs.

Chapters

When you have cash on hand and you have a financial cushion, you have power. In a bad economy, interest rates go up. So cash is expensive, meaning to borrow money from bank is really expensive these days, so you have more bargaining power. The fact that you don't have to borrow, you have cash on hand, you can make a decision quickly and you can even negotiate some deals, depending on what the deal is. It allows you also to invest in opportunities that come about, like an acquisition, buying a smaller company to help your company, or buying a new tool, or making a hire, or buying new equipment for your business, whatever it might be. The point here is that.