I have finally reached a position where my personal finances are more than adequately being taken care of by my job income and I am working to funnel any and all extra into my business endeavors. What I am curious about now is how much/ or what method should I use to determine how much cash reserve I should keep. I would say I am not in the toddler stage of my business development rather than the infant stage, if that helps at all.
Congrats on this reaching milestone and two points I offer:
1. do not let this success get to your head... you have to continue to think rationally and be as diligent as ever to continue achieving
goals... you got to this point without overspending, etc...
2. to directly answer your question as to how much/what method... A
S MUCH AS POSSIBLE WITH NO EXPOSURE TO RISK!!!!! these words are crucial especially in the infancy stage of biz... now, you appear to be referring to excess cash flow that can be used to build the biz, am I right?
anyway I know of several people who would love to start over today had they taken these very words to heart, sad stories really that could have had much different outcomes just by being deliberately careful.
when the biz I opened 14 years ago stopped sucking all of my cash flow, I started to accumulate reserves (and fund a porsche among other perks) by opening CD accounts on a monthly basis and using a ladder
system - rates were significantly higher then, and I started with a few grand a month and it grew from there.
because I wasn't sure if this money was going to be needed tomorrow or in 10 years, I thought keeping it liquid (never more than 120 day CDs) with the smallest risk was crucial to building the biz.
it's because of this strategy that I was able to open other businesses, remain debt free (for 7-8 years) , buy
real estate and manage equities portfolio
good luck