When should I use the cash inside of my Vault?
Should I take a loan from a bank, pay cash, or use the cash in my Vaults?”
There are two things that I would have you consider when making that decision.
- The macro vs microeconomic view
- The sleep test
The detail is in the video, but here is a brief.
Macroeconomics means taking into account everything that’s going on within the financial question. Microeconomics only looks at the choice itself.
Measure the cost of the money, measure the efficiency, and measure the economics.
If you are not utilizing AIS™ in your life, or don’t have “Vaults”, you’re paying cash and giving up the interest you could have earned on that cash…
or you’re doing a bank loan and you’re paying the bank the interest.
Either way, there’s an interest cost for you.
Get clear on what the macro cost of the money is for all three:
- Cost for Paying Cash
- Cost for taking a Bank Loan
- Cost for taking money out of your Vault
When you are clear about the costs, then apply the sleep test!
What thoughts are going through your head at night when you lay your head down?
Are those thoughts empowering, allowing you to relax and fall asleep?
Or do those thoughts stress you out, making it hard to go to sleep?
Stress raises the cortisol levels in your body and lowers your immunity…
It causes a ripple effect on your health and life.
That’s the sleep test.
In the video, I give an example from one of my clients who was buying an X-Ray machine for his office and wants to know if he should pay cash, lease the equipment, or utilize his Vault.
I go over his options for:
- Minimum amounts to keep liquid in a bank account.
- What about loaning it from the bank?
- What to keep liquid inside of a Vault.
- What about loaning yourself the money from the Vault?
Then I show how & why the “Sleep Test” takes all of the confusion out of the problem.
The bottom line is, you must look at any major money decision from a macroeconomic basis rather than a micro view.
Plug your own numbers into the example in the video and see how it works out for you.
For the sleep test:
Look at your self-assessment each time you make a major money decision.
Anything that drops the score on your Vault AIS™ Self-Assessment is by default brooding stress and will not pass the sleep test.