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Every Individual and Business should Understand the Value of their Cash using this simple process:



1. How much cash is there in total in all deposit accounts, including the current account?
2. How much of this cash is required over the next 12 months to fulfil lifetstyle requirements?
3. Put the amount required over the next 12 months into the best instant access account
4. Build a portfolio of fixed term deposit accounts with the balance, over 1, 2, 3, 4 and 5 years
Growing Pile of Coins
Structuring cash in this way:
  • Gives the best long term value
  • Means there is always access to cash
  • Ensures a new tranche of cash always becomes available every 12 months
This structure gives the best value and best flexibility that can obtained from cash.
This is the minimum financial return every individual and business must achieve from any investments to make investing worthwhile.
If this return cannot be beaten by investments then investments should not be undertaken.
Examples
Example 1

An individual has £40,000 in total.

Requires £10,000 available over the next 12 months.
Example 2

A business has £120,000 in the business current account.

Requires £50,000 available for trading purposes over the next 12 months.
Example 3

An individual has £300,000 in total.

Requires £30,000 to be available over the next 12 months.
Cash is every client's most important asset. Make sure they manage it effectively.