Rule One: Your Cash Is Your Strategy

Mark and Jesse continue their deep dive into YNAB's Rule One -- give every dollar a job -- as it applies to businesses. Jesse says "show me your outflows, and I'll show you your strategy." The things a business spends it's money on, is a proxy for the businesses strategy, just like the things individuals spend money on is a reflection of their values.

 

Mark takes this idea a few steps further, insisting that all of a business' cash is wrapped up in it's strategy, or lack thereof. Inflows, outflows, cash in the bank, debt... they all play a role in determining the strategy and direction of the business.