Cash is Liquid. With infinite options to choose from, you become opportunistic with Cash. Cash gives you the leverage, you decide the terms and play power-negotiations game.

Cash is equally important for institutions.

Without the Cash, all leverage is lost. You run out of options.
there can be times when you will have spent all your money over petty things like parties, luxury travel, etc. Then the struggle period arrives and you cautiously spend your cash.

There are multiple ways to be Cash Rich, following are a few:

1. Saving Money

Can you survive 5 days with 150 bucks. Well, that’s totally an art. Saving Cash is important. It is easiest to liquidate ( it is already liquid after all ). Cash gives you power, to seek out opportunities and make most of them.

Try putting artificial constraints on yourself and see if you could become disciplined towards spending money. Categorize your Spends, Monitor them and Optimize them. Map the Cash Flow.

Every penny saved is Penny Earned. Stick to that rule and you will end up with a lot of them.

2. Defer the Payments using Credit Card

Credit Card is not evil, Your indiscipline is. If you become disciplined with finances then you can play with Credit Card and can enjoy Interest Free additional Credit for maximum 45 days.

Following are the best practices:
Never exceed 50% of your monthly income using Credit Card in any particular Month. This is critical as otherwise you will be struggling to pay the bills which could lead to disasters.

Pay well before time. Credit Card Companies thrives when users become defaulters. Don't be one of them, don't pay the fines and interest rates which are quite obnoxious. Always pay well before the due date.

3. Invest in Equity Instruments with Dividend Option

Dividend is a brilliant discovery / invention in the field of investments. Companies declare dividends which essentially means sharing a portion of profit with the stakeholders. This is the way to shed / share some of the cash with stakeholders. This means Investors will be getting some cash in different time intervals which could be put to better use.

Can you think of more ways to become Cash Rich ? Leave your thoughts in the comment box below.