Trillions of dollars in the US economy either sit passively in savings accounts or flow through checking accounts underutilized. But now, a groundbreaking financial discovery has provided a way for that cash to be merged with investments, unlocking a multi-trillion dollar trove for wealth generation. And it has incredible implications for consumers, businesses, and the economy at large.
Investing through cash flow utilizes the similarities between the cash flow and investment cycles, merging them into one process. With this new approach, the amount of wealth that can be transferred into growth assets dramatically increases. Additionally, the investment cycle is able to match the speed of the cash flow cycle, which can result in a more immediate impact on quality of life, something we at Soon call Lifestyle Fintech. At Soon, we enable this concept through unique technological innovations on top of tried and tested financial strategies.
Investing is really about purchasing an asset that will hopefully increase in value in order to improve your quality of life at some point in the future. To complete that cycle, investing requires two major events…invest and divest. Coincidentally, cash flow has a similar cycle…inflows (deposit) and outflows (spend). The primary function of spending is to increase (or maintain) quality of life…it just traditionally has had a shorter life cycle than investing.
Investing with cash flow shortens the investment loop, making it possible to benefit from investment gains at the perfect moment…an expense (outflow). Soon’s divesting strategy is not trying to guess the ideal timing of the market but instead acting within the ideal timing of your personal life. Soon is engineering the investment cycle to best match the needs of your daily life.
There are various approaches to investing, and they typically come with liquidity problems, including penalties and delays. But with Soon, liquidity is available as fast as you can spend with a debit card. Instant liquidity removes one of the more annoying and risky elements of investing and makes it easier to open up more of your cash for investment.
By keeping investments available for immediate liquidity, Soon can put to work a previously untouched percentage of your money. For most people, it’s that cash you spend on things that aren’t absolutely necessary…the cash that doesn’t go to paying necessary bills, and the cash that doesn’t get separated and sent into savings or long-term investments. For others, even more could be included if sufficient savings are available to act as a buffer to market volatility.
Investable cash flow utilizes ALL of your discretionary income by including the amount you spend on a daily basis, and in some cases can include even more of your cash flow.
Soon will help you identify how much of each deposit is wise to invest. Some people could potentially invest 100% of their cash flow if they have enough of a cash buffer to cover their monthly expenses. For everyone else, an appropriate percentage of each deposit will remain in US Dollars. This keeps enough cash in your account to get your bills paid.
With a more traditional long-term investment strategy, all of your investments are exposed to market volatility for a long time. So when market downturns or black swans come around, there’s more potential for losses. But the beautiful thing about cash flow is that it’s always coming in…but it’s also always going out.
Soon is constantly investing but also constantly divesting. By taking gains early and often with no human bias and without attempting to predict the future, Soon is simultaneously building wealth AND reducing exposure to market downturns. Learn more about how Soon can help you better prepare for market downturn & black swans.
Soon is on its way. Sign up now to get early access at Soon.app.