During the month of January, three+one is publishing a five-week Winter Blog Series to discuss the five different categories of our cashVest® score. Every three+one liquidity analysis includes a cashVest score to establish a baseline going forward. It has been demonstrated, time and time again, that if an entity follows our recommendations in each of the five categories, and a higher cashVest score is achieved, the more money an entity will earn on their low- and non-performing cash.
This week will highlight our second category:
Liquidity represents those dollars available for disbursement at a given moment. Many times the need for liquidity is simply a “frame of mind” for the unexpected, leaving funds dormant for the pure comfort that dollars are kept available “just in case.”
Having dollars available for disbursement while also being invested is a balancing act, but you can have both.
To achieve five stars in this category requires having 90 to 100% of your operating and non-operating dollars invested, while maintaining enough liquidity to meet various disbursement needs.
At three+one we can help entities determine their day-to-day cash needs, making sure that every dollar of operating and non-operating funds is being invested at all times by their financial institution(s)—while still ensuring that all funds remain safe, liquid, and are earning a good yield.
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