Lauren Card Live

When I was a little girl, it was a happy day when I found a penny lying on the ground.  A penny was real money…it could buy bubble gum or five pieces of those wax candies with juice inside,  Better yet, it could find a home with other coins in my piggy bank.  It always seemed to me, to be a honor to find and pick up a penny.  It was after all, real money, real cash!  It was almost un-American to leave one lying there on the sidewalk, the Universe had given me a gift.

As the years have passed, the value of the penny has dwindled.  So much so, that I hardly ever see a penny on ground any more.  The Federal government still makes them and I see them in cash registers, but on the ground?  Not so much.  My guess is that credit cards and debit cards, and 25 cent pieces of bubble gum spell the end of the penny.

Today, it’s a different story.  We’ve forgotten the value of cash, in favor of concepts like balance sheets, and lines of credit.  After all, why use your own cash when you can charge it?  Don’t those big businesses depend on having oodles of credit?  Oops…that was yesterday.  The events of the last two years have put an end to easy credit, even for the big banks.  It’s not so easy to charge it any more.  Cash matters again.

So what’s an Entrepreneur to do?   Should we use cash to pay for things, or assuming we still have access to it, should we use credit?  The answers are not so simple.  Spending cash may make us feel legitimate, and it means that we don’t have to worry about big monthly recurring payments to service the debt.  On the other hand, using up all of your cash can be a real problem if you’re a small (or big business).  Cash is King and not having cash on hand puts a business at risk.

As I thought about it, I realized that the answer lies in the penny.  There’s no one strategy that will fit for everyone.  Some should use cash, and some should use credit.  Everyone, on the other hand, should respect, honor, and build up cash reserves.  Cash is good, cash is real, and cash can save the day. I’m grateful for every penny I pickup and I hope you will pick them up too.

<< Everyone Likes Comfort Food Did You Hit Save? >>