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MAIN FEATURE
CASH ≠ LIQUIDITY
Here's the thing most people miss:
CASH = What you OWN (sitting in bank accounts, earning nothing)
LIQUIDITY = ACCESS to capital when you need it (borrowed against assets, on-demand)
Liquidity is access to cash when I need it. It's not the same as having cash in the bank.
Here’s what most people do:
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Keep $50,000-$200,000+ sitting in savings accounts
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Earning 0.5% interest (maybe 4% in a high-yield account if they're lucky)
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Feel "safe" because they can see the cash balance
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Lose purchasing power every single day to inflation (3-4% annually = $2,000-$8,000 gone per year on $50K-$200K)
Here’s what the wealthy do:
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Keep minimal cash reserves (3-6 months of operating expenses)
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Deploy everything else into appreciating assets (Bitcoin, real estate, stocks, businesses)
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Access cash on-demand by pledging those assets as collateral
Do you see the difference?
Your $100,000 in cash does one job: sit there and depreciate.
Their $100,000 in Bitcoin does two jobs: appreciate at 30%+ annually AND serve as collateral for instant liquidity when needed.
The False Safety of Cash
I was on a coaching call recently with a member named Gabriel.
He had a bunch of liquid cash sitting in his account. When I asked why, he said he kept it because he felt he needed it for safety.
But that cash was earning ZERO while losing 3-4% to inflation. He was paying a 3-4% annual fee for the "safety" of holding cash.
What’s safe about that?
So we listed all of his assets: Bitcoin, real estate equity, business lines of credit. We found out he had over $500,000 in available liquidity without keeping any of that cash idle.
He could access it in 24-48 hours if needed. But in the meantime, his capital was working for him, compounding and growing.
How to Think About Liquidity
Here's how I think about it.
Instead of asking "How much cash do I need?" ask these questions:
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How much liquidity do I need, and over what timeframe? (3 months? 6 months? 12 months?)
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Does it have to be CASH, or just ACCESS to cash?
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What assets could I borrow against instantly if needed?
When you reframe it this way, everything changes.
Here are my liquidity sources. None of which are cash sitting in a bank:
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Bitcoin – can borrow against in 24-48 hours (10-20% LTV, ultra-safe)
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Business line of credit – open but unused, available instantly
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Home equity line (HELOC) – available on demand
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Stocks/securities – can borrow at 5-6% same day through margin or securities-backed line
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Whole life cash value – can access in 24-48 hours
Total liquidity available? Over $1 million.
Actual cash sitting idle in a savings account? Minimal. Maybe $10,000-$20,000 for operating expenses.
The rest is deployed, growing, compounding. But still accessible when I need it.
That's the key: liquidity is rented, not owned.
Here's how I structure this.
From my Treasury Operating System, I have liquidity rules:
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"I will maintain 12 months of operating liquidity before any illiquid deployment."
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"I'll never deploy emergency reserves into speculative positions."
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"I can borrow against assets for liquidity, but never above 25-65% LTV (depending on asset class)."
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"Liquidity is always rented, never owned."
These rules keep me safe. I'm never scrambling for cash. I'm never forced to sell assets at the wrong time.
But I'm also never letting capital sit idle, losing purchasing power to inflation.
If you’re not familiar with my Treasury Operating System, I’m doing a live event this Thursday where I’ll show you how to create your own Treasury
Doctrine which allows you to safely rent liquidity too. I’ll also show you more ways to give one dollar multiple jobs, and build your entire wealth engine.
You can learn more about the event and sign up here.
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