Ever heard of the term: “Asset rich, cash poor”?
It refers to a situation where you have lots of assets, but no hard cash.
For example, you may own R100million worth of properties, but only have R10,000 cash in the bank.
This is a very fragile situation, because if you have any emergency expendenture you will not have the cash to pay for it, even though you are theoretically a very rich person.
For an entrepreneur, cash is more useful than assets.
Rather than feel proud and gloat over what you think you’re worth, pay attention to how much cash you have in the bank.
The more cash you have, the less susceptible you are to nasty surprises, and the more able you are to take advantage of opportunities.
Cash is more useful than assets.