"Cash is for winners."

At the heart of it, this statement is all about the power of money. Having cash means you have choices, opportunities, and the upper hand in many aspects of life. It’s a blunt way of saying that being financially prepared—having liquidity—can give you a significant edge.

Historically, this idea has always been relevant. Think back to the Great Depression when those who had cash could buy stocks, real estate, and businesses at rock-bottom prices. They ended up in a much stronger position when the economy rebounded. Or consider the 2008 financial crisis: those with liquid assets could snap up distressed properties and other investments for a fraction of their worth, setting themselves up for huge gains when markets recovered.

Let’s bring it down to a more personal level. Imagine you’re considering two job offers. One pays slightly less but includes a generous cash bonus; the other has a higher salary but no bonus. If you’re thinking long-term—and taking the “cash is for winners” approach—you might lean towards the offer with the bonus. That extra cash gives you flexibility. You could invest it, save it for a rainy day, or use it to start a side hustle. It’s an immediate resource you can tap into, unlike the higher salary which just trickles in over time.

Now, how do you apply this wisdom in your life? Start by prioritizing liquid savings. Build an emergency fund that covers at least three to six months of living expenses. This isn’t just about peace of mind (though that’s a big part of it); it’s about having the power to make decisions that are best for you without being forced into a corner. Secondly, be mindful of opportunities where having cash can give you leverage. Maybe it’s negotiating a better deal on a car because you can pay upfront, or perhaps it’s being able to quickly seize an investment opportunity.

Picture this scenario: You’re at an auction for a piece of property. Most people are there with loans pre-approved up to a certain amount. They’ve got constraints and stipulations tied to their bids. But you? You’ve got cash in hand. When the bidding heats up, you can confidently make your bid knowing you have the funds ready. Others hesitate, caught up in their loan approval limits. You win the property, and in a few years, its value skyrockets. You had the upper hand because of your financial readiness.

This concept isn’t just about being wealthy—it’s about being smart and prepared. It’s about recognizing that having cash on hand doesn’t just symbolize wealth; it symbolizes power, readiness, and the ability to make the best possible choices for your future. So, next time you’re planning your finances, think about how you can ensure you’re the one holding the cards. Remember, in many situations, cash really is king.