Shuttered Offices and Retained Earnings

So Zynga is closing down offices. Not totally a surprise since it hasn’t been doing hot for a while and huge offices with massive banners cost a bunch of money.

When I see these companies that rose fast, and are crashing fast I always wonder how much operating cash they have. How much did the spend figuring that life would just keep rolling on with their addictive clicking games? Did they really put money away for the future?

One thing I’m doing is putting 5% away as a cash account. No it’s not for new computers or fun stuff. No it’s not an emergency fund of any fashion, it’s simply retained earnings. The only time I get to touch it is if I retire or decide to close the business.

Now if all hell brakes loose in the company it’s there to cover things like employee salary (of course that’s after the 6 months salary for each employee I’m working towards) so that I don’t leave anyone in the lurch.

It’s easy to think that things will keep going as they are now, but it’s not gauranteed. Make sure you’re saving for the unexpected.