What is Cashology?

What is Cashology?

Britannica has been replaced by Wikipedia, a place where information and education can be created by anyone.  Fans of The Office may remember Michael Scott’s interpretation of the website. Joking aside, Wikipedia is a very powerful and intuitive resource. P&A’s “Cashology” is an equally powerful concept, one that our best clients have come to learn and understand.   It doesn’t register on Wikipedia quite yet, but maybe it should.  We’ll leave that up to you…

Cashology (kash-ology)

  • The study of; and things pertaining to money
  • The art of earning, investing and hanging onto money
  • How to avoid being fleeced or cheated out of money

Principles of Cashology

  • Money has no value until you use it.
  • Most of us will have more money in the end if we spend a little as we go.
  • Liquidity makes a difference. Money will get you through times of no success better than success will get you through times of no money.
  • Think of yourself as a bank….be the bank.
  • If you don’t make money decisions well, hire someone who does.
  • Appreciated securities (stocks and bonds) are cash equivalents, but cash is not an appreciated security.
  • “Timing” the market doesn’t work. “Time in” the market does.
  • Hit for singles and doubles, don’t swing for home runs.
  • If you do something you will have something. If you do nothing you will have nothing.
  • Finish what you start. Most people don’t.
  • Risk is a relative thing. Successful investing reduces the fear of risk in an asset class; it does not eliminate risk.
  • Loans to family members are gifts.
  • Asset classes generate different returns for different reasons, most of which are related to risk.
  • You can spend interest, dividends, and capital gains. They are all just money.
  • A plan means nothing without execution. You can’t properly execute without an effective plan.

You’ve just read 15 concepts that help define cashology.  There are many more.  Over time, it’s our goal to teach you in the ways of cashology, and ultimately to enhance your success in the process.

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Since 1995, Pittenger & Anderson has guided individuals and families going through money-in-motion events. We are a fee-only Registered Investment Advisor and a full-time fiduciary providing investment management, financial planning, and complimentary services to 700+ clients in over 30 U.S. states.

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