Many who are farming with cash think this book is not for them. However, that could not be farther from the truth. Farming with cash is one step ahead of the majority but as I say cash is not king, it’s queen.
What, not king!?
No, it’s not. There are three words we are missing from our financial vocabulary that will forever change what we know about money and those words are “lost opportunity cost.” In simple terms, it means that when you buy something with cash, that cash is gone forever in exchange for whatever you bought. You now have given up the ability to ever make money on that money again or buy anything with it again. You have lost opportunities.
For example: should a tractor be bought with cash, the cash is now in the hands of the equipment dealer and out of the hand of the farmer. The farmer just exchanged cash for a depreciating asset.
The goal is to keep the cash working for the farmer as they use it to purchase the tractor. What we do is put cash in a place where we can continue earning interest on it all while we use it as collateral to buy the tractor. The only place that allows money to do this is a whole life insurance policy.
Every day you wait you are losing opportunity on your money.
I published a Mary Jo Minute video to expand a little more on why Cash Is Not King.
Watch it here: https://www.farmingwithoutthebank.com/mary-jo-minute/