Summary
Money isn’t the goal; it’s the middleman. This episode reframes money as a tool for exchanging and storing value, and explains what that means for how you invest, hold cash, and build an intentional plan as a corporation owner in Saskatoon.
1) Start with a cleaner definition
At its core, money is a tool to move value around—from labour to paycheque, from cash to groceries or an investment. As Tré puts it: “Money is… the middleman between sources of value.”
That definition helps separate two ideas that often get mixed up:
- Value: things people want or need (a business that ships freight, farmland, a home, a service).
- Currency: the accounting token we use to trade those things (Canadian dollars, U.S. dollars, etc.).
2) Why this matters now: inflation and trust
Modern currencies aren’t backed by gold; they’re backed by trust and policy. That means cash’s purchasing power changes over time. In the episode, Sierra sums up inflation cleanly—“the value of money decreasing.” Tré agrees, adding that an expanding money supply and policy design can push people to spend now rather than later.
Takeaway: holding significant cash for long periods is risky if your plan assumes it will hold value.
3) The “value over currency” mindset
If money is the middleman, then your job is to translate today’s effort into durable value, not just a growing cash pile. That’s why Tré prefers owning productive assets (businesses, broad-market equities) or real assets (farmland, certain real estate) over large idle cash balances.
“Put that value into something else that has value outside of currency.”
This isn’t about chasing shiny objects; it’s about matching the store of value to your long-term goals.
4) A simple framework for corporation owners
A) Map where value lives today
Create and review your networth statement:
- Corporate: retained earnings, corporate investment accounts, equipment, debt.
- Personal: home equity, RRSP/TFSA/non-registered, cash reserves, mortgages/LOCs.
This shows what portion of your wealth sits in productive assets vs currency.
B) Decide what to hold as cash (and why)
Cash is useful for:
- 3–6 months of household expenses.
- Operating cash and contingencies in the corporation.
- Known near-term outlays (tax, payroll, equipment).
Beyond that, consider translating excess cash into assets with durable value and global demand.
C) Own real businesses (simply)
You don’t need to pick winners. A broad equity index gives you exposure to thousands of companies that produce value people pay for—shipping rail, software, health care, power, and more. Over time, business profits—not just currency moves—drive returns. (Yes, currency can boost or drag Canadian returns in any given year; the point is to own the underlying value creation.)
D) Diversify your “value language”
If your entire balance sheet is denominated in a single small currency, you’re taking a risk you may not see. Owning global businesses helps diversify that exposure because the companies sell into multiple currencies and markets, regardless of what the Canadian dollar does.
5) Common questions (answered plainly)
“Isn’t gold or Bitcoin a store of value?”
They can be part of a strategy. Both rely on people agreeing they’re valuable and are, functionally, still middlemen between real-world value sources. Gold has a long history; Bitcoin has engineered scarcity. Neither produces cash flows like a business.
“So… should I hold no cash?”
Not the point. Hold enough cash for stability and near-term needs. Then funnel the excess into productive assets with intention.
“Markets move around—how do I stay comfortable?”
Tré’s framing helps: “I’m so comfortable with the market fluctuations because I understand it… Holding value in [currency long-term]… is a poor decision.” The focus is on what you own and why, not on month-to-month price swings.
6) What to do next (checklist)
- □ Create a networth statement (corporate + personal) and total cash vs productive assets.
- □ Set a cash policy: how much to keep, what it’s for, where it sits.
- □ Automate investing of excess cash (monthly) into a diversified, low-cost, equity-heavy mix aligned to your risk and time horizon.
- □ Review currency exposure: ensure a meaningful share of equity holdings is global.
- □ Review; revisit cash policy when needs change.
- □ Understand why each asset exists in your plan (store value, produce income, hedge risk).
Closing
Currency is a tool — not a good long-term store of value. For corporation owners, the job is to coordinate corporate and personal decisions so more of your wealth sits in things that create value, not just in currency.