Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

What Is The Value of Liquidity?

18 Jul 2024 · 1 min

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Short excerpt from a YouTube video ("What Is The Value of Liquidity?" by Richard Canfield, July 18, 2024) arguing that liquidity — unrealized cash available for emergencies — has substantial value in the infinite-banking context. The speaker contrasts aggressive debt-elimination (sending all discretionary cash flow to smallest debts as a snowball) with maintaining savings: if a $1,000+ emergency arises after months of funneling cash to debt, the household may have drained savings and lack liquidity.

Chapters

There is unrealized value, what we call liquidity, which is huge in the infinite banking world. What is the value of liquidity? How do you actually measure the ROI of liquidity when a crisis arrives and you don't know where to pull from? Most people are doing with their debt elimination strategy. They make money, they try to spend less than what they make, they have discretionary income, aka cash flow and they send 100% of that to their smallest debt and they create a snowball effect. What happens Jason, when there's a thousand dollar plus emergency the next month and you just used all your cash flow for however many prior months? If you don't have enough saved, then basically you drained your savings.