Frances Cook

It's not the later money.

It's not earning much.

This is a dollar employee that you could look at and think,

You aren't doing much because the general rule is, and again, this is where you're going to see the money time relationship.

The general rule is the easier and the faster it is to get that money, the less you earn on it.

So you might be tempted to take that money and throw it into the share market for a bit because you're saying, hey, it's earning great right now and I can pull it back out if it's needed.

Why should I miss out on the money it could be earning me?

That could get me ahead faster.

But

clever ideas like this, and I'm saying clever ideas in quotation marks there, it misses the point.

That money is your safety.

Safety means you don't earn much on it, but that safety is also what allows you to earn more elsewhere.

It is part of the system.

You need it because here's the other part of it.

The faster you can access that money, the less you will earn on it,

But the other part of that money and time equation, you have to make that sacrifice in some areas.

It is important.

But we have to balance that by making sure you only sacrifice what you need to and nothing more.

That's why you've got to understand the money and time relationship.

So why do we make that sacrifice of some money being in cash savings?