Cash is King, Credit is Power

I teach a concept called “income shifting” where I teach individuals personal finance. Along my journey I discovered some very interesting things, hence the phrase “Cash is King, Credit is Power.” In the street when you hustle cash is the measure by which your success is determined. Whoever has the most cash in the street is the king. I chased cash for a long time only to realize that I couldn’t save my way to wealth. An entrepreneur’s mindset is something I’ve always held, but the actual belief that I could run and maintain my own business was just a thought. The thought process I held was that “If I could save enough money then I could eventually go into business.” Like I said it was just a thought, I had no idea what business I wanted to pursue or even a business plan. Eventually I got out of the street mentality and started hanging around people who were doing business, I mean real legit business.


There is Free Money in Knowledge. When I discovered the power of credit I was no longer turned on by street money or anything affiliated with fast money. Why? because  in the street when you hustle you directly make quick money and it’s good for the time being but your future looks bleak; in business it takes more time to make money, but in the end its more longevity in it. You need credit in America for a lot of different reasons. In the business world “Cash is king, but Credit is Power.” You can do a lot more with credit than you can with your own cash. As long as you establish good credit behavior the world is your oyster. I personally didn’t understand anything about credit or interest rates. Capitol One was my first teacher when it comes to interest.

When you are in a financial hole, protect your attitude more than your credit.

If you want to build and maintain a powerful credit profile, credit control is key. Unfortunately, no matter how well you plan, life will always throw curveballs. The level of financial success you attain in life will have very little to do with how successfully you deal with success, but a whole lot to do with how you deal with the rough spots.

Take control of your credit by playing offense and not defense.

When there is more debt than money, most people want to hide, even to the point of not answering the phone from fear of another call from a creditor. Or they let bills and overdue notices go unopened. There is a better way. It pays to be honest. When I was getting out of debt I called my creditors and let them know when I would be late or whatever my situation was. They want their money so trust me they will work with you, just do what you say you are going to do when you say you are going to do it.

If you plan on building any real wealth in this country it’s vital that you understand the credit game and how it is played. Some people can’t get their credit score up because they aren’t doing enough. Some people can’t get theirs up because their doing to much. You are playing this game whether you want to or not, so it’s best to learn the rules and make your life easier.

When other people find out how responsible you are, they don’t mind lending you large sums of money. Use their money to invest to avoid using your own. Make wise decisions and look out for your family. You should be creating wealth for your kids and grandkids. A real make doesn’t just take care of his family while he is here, he takes care of them long after he’s gone. Learn the game and play it better each day. I will go in-depth in a later article about tax strategies to help you increase your cashflow, so you can use the extra cash to get out of debt to start investing. Also, go to my contact page and send me an email if you want to get your finances right and exact. “Income Shifting” can help you just like it is helping others. Get your credit right stop playing around. Be responsible, and learn the credit game because the capital that you need to be successful and create generational wealth lies in your ability to get other people’s money and use it effectively.

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