Bucket #4 - Your Cash Bucket

ABOUT THIS EPISODE

On today's episode, Financial expert and Amazon best-selling author John Browning talks about Your Cash Bucket. Regardless of your financial situation, you need an appropriate Cash Bucket. Learn more when you Connect with John by texting "LIFE" to 21000 or GuardianRockWealth.com.

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert in number one Amazon bestselling author, John Browning Jones, the founder of Guardian Rock Wealth and serves clients across the United States. John's the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy mailed right to your door. I'm Michael The lawn, your host for the next few minutes as we chat with financial expert and business owner John Browning. Well, John Browning, it is a time for another great episode of Your podcast. I'm so excited. How are you today? I am doing fantastic. It's just an amazing I'm glad to hear it. Hey, we have been talking walking through this miniseries, a guardian rockwealth original called the four buckets of money, and in...

...the last few episodes, so we start out with a high level overview. That was that was the printer, that was the trailer, let's say, for the for and then we had bucket number one, which is your growth bucket. Bucket number two is your income bucket. Yeah, well, at number three, is your emergency fund bucket. Today we're talking about bucket number for, which is your cash bucket, and that one actually caught me by surprise when you were when you're first explaining this. I wasn't expecting that. I don't know why, but talk to us about the cash bucket and what's its purpose and why should we have it, and how much and all that. Well, you know what, it is interesting right. I know I caught you by surprise because you've heard me talk about the fact that cash carries risk and most people, a lot of people, just downright disagree with me on that. Well, it doesn't care any risk at all, and my argument on that is that, especially in times like we're living in right now,...

...two thousand and twenty one, two thousand and twenty two. Yeah, we're talking about double digit inflation this year. Yeah, numbers just recently came out and the past twelve months were at about eight point five. And it just keeps going off. As, as you pointed out in a previous episode, you're two by four. Is Literally the math works out two times four eight something for too by four. Right. Yeah, yeah, I thought it meant that it was two inches by by for, which is but evidently it just has to do with how much it costs. But mathy clan love it. But inflation, this, this escalating in costs, means that your cash actually carries risk because your cash is being devalued. So right, this is why managing the amount of cash that you have is very important and not letting that bucket get too large. Okay, but it is full of exactly...

...what I said. It's full of cash instruments such as maybe a money market fund, cash in the bank, savings account, checking account or literally, and I do actually recommend people keep some cash in and around their home. And the reason for that is if you ask the folks in Ukraine, do they wish they would have had some physical cash, I'm sure they would have said yes, I wish I would have. And if you ask the folks down in Florida after Hurricane Florence, do you wish you would have had some physical cash, they would say yes, vice versa. In Texas and and any other place they've had a natural disaster or some sort of wartime issue, the folks in Greece several years ago wished they had some physical cash. So having some makes some sets, but having too much is very dangerous in a...

...whole different type of risk. But that's and I really like to keep that to the size and it's different for everyone. I don't like to have cash of more than three months. Kay, I agree, three month living expenses, three months living expensive, but you would normally spend in three months is sort of a good rule of thumb. Some people say sick, some people even say twelve. I think that's too much, but you know, it depends on the individual right and what makes them be able to sleep at night. Exactly. Yeah, and if in you could put some cash under your mattress if you have trouble sleeping, and that would work because you can store it. They're probably not the best place, but that is good to know because that's different. Having cash on hand is different than Your Emergency Fund, which we talked about last time, because if you have cash and you have an emergency and you have to use your cash for that, now you just to play your cash. So it's important to have all four of these buckets in place, but to have enough cash on hand. Yeah, the I...

...remember the the lines on the TV, right when all the things happen and people are lining up in front of the bank and the bank was closed and they're trying to get their money, and we're like work either. You know what, we'll just go to the ATM. It ain't working cash at me. Well, maybe, you know, it's just cash is still keen. It's been. So it is important to have an and and having the right amount is different for each person. That's why working with you so important, because it's just it's part of an overarching portfolio that makes sense for each individual client. Right. And the next question I get I will tell you, and I've gotten this more and more over the past, I don't know, your year and a half is woe. What about good point or some other type of crypto currents? Yeah, and, and I am not a NAS are by the way, on the crypto currencies, and we did a podcast about that. Did this cryptocurrency or cry tonight or something like that, I...

...believe it was, and there was there was a story of the gentleman from the Ukraine who was able to use his bitcoin to be able to escape and bring his family into safety. So it is. It is not a bad thing, but you need to understand that that is truly not cash, because cryptocurrency right now, that's seeing. That won't change in the future, but right now it can be very difficult to spin. Yes, actual Bitcoin, doosecin what? Whichever card? Know Which? Whichever one that it is, is your favorite one that talk about? Yeah, etherium is one of my favorite ones, but that's a whole different thing. But to answer that question before somebody asks it, is Bitcoin, generally speaking, at my opinion, is not to be considered cash, cash in that cash bucket. But I understand if you disagree. And having a portion. Talked about portion control and an earlier episode of the Bucket List and the fucking list. That's a whole...

...new idea for a name for the series, right, I love it. Yeah, so that's the answer to that question that often comes on. Awesome, that's good. So having some cash, you three to six months iss but again, depends on each person there that and that's the thing John doesn't when he works with you. He doesn't like pull off the shelf financial plan a and that's what you fit into our financial pin l and that's what you've fit into. It's your plan because it's based on your values, your life, your dreams, what do you want to do? And based on that, John can go do his magic right and look at all of his things and have conversations with you to understand these, these four buckets of money and Whoa so much more right. This is just a simple down primmer on financial planning. Right of that anybody can. I could share this epic, these episodes John, this this mini series with my thirteen year old daughter to get her started understanding different buckets when she's babies. That he should make it a fortune right now, by the way, of how to save them money and...

...all that. Yeah, it's just really good. But understanding these four buckets of Miney, we talked about the growth bucket, the income bucket, the emergency fund bucket and now the cash bucket, for buckets that you need to have in order to really have a good handle on your finances and stay out of the ditches. How about that? All right, right, I like it. I like it. I like the analogy. Yeah, we've we talked a lot about car analogies around here. It's okay, I think. I think people resonate with them and it makes it makes what you do more understandable for people like me, because I might don't have a financial brain and sometimes you get alitherol on me is and that the point thing. You just talked about etherial or something like that. So I we just want to make things practical and easy to understand. So these buckets of money, your bucket list of money, whatever we call this episode. There's mini series brought to you by Guardian Rock wealthcom. You can find John Browning there. You can...

...also find them on your cell phone if you just text the word life to twenty one thousand on your cell phone. John's going to deliver to you some information, Short little video, is book, how to get a copy of that, and just information about him and how to schedule a call with him, because that's really where it all starts, as a conversation. So let me encourage you to reach out to John Browning, creator, producer and director of the bucket list, the buckets of money, and this wonderful mini series has been brought to you by John Browning and Guardian Rockwealth, helping you build a life, not just a portfolio. John, this has been fun. We should do more mini series. I like the idea. Yeah, WE'RE gonna ask to do that. All right. Well, my friend, thank you for a great episode on the Cash Buget. Thanks for being who you are in helping so many people build a life, not just a portfolio, with all that you do at Guardian rockwellthcom. All right, thank you as well. We'll see you next time. All right, but by money really...

...is a big part of our lives, and John Browning can help you and your family learn how to keep money in the proper perspective. It's important, but it's only a tool that can help you build the life that you want. If you like, John Emilie a free copy of his book build a life, not a portfolio. Go to John's website, Guardian rockwealthcom, and click the contact US link and send your request. John Will Mell a copy of his book right to your door absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automagically when it's released. Have a terrific day. Nothing in this podcast should be construed as personal investment advice, and past performance is no guarantee of future results. Investing is not appropriate for everyone. There is a risk of loss associated with investing in the markets. No representation or implication is being made that using any methodology or system will generate...

...profits or insure freedom from losses. Please remember that investing carries risk. Guardian Rock Wealth LLC and its affiliates are fiduciary investment advisors. Please consult with US or another experienced qualified investment advisor before making any investment decisions and or trying to implement any of the strategies and tactics we may discuss in any of our publications or podcasts.

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