Bill has been running his local homewares store for 4 decades and has built up a large following of loyal customers. Bill believes that the key to developing a loyal customer base is to be generous in giving credit, to let customers pay when they have the money, and have plenty of stock so that customers don't have to wait for him to order in what they want. Bill also prides himself in minimising his debts by paying his accounts as soon as he receives them; to do this he likes to keep at least $30000 in his store's cheque account.

While you are studying at university, you work part-time for Bill and are aware of his approach to customers and bill paying. Bill has expressed his concern that he does not think he will have enough saved for when he retires in a few years.

Explain to Bill how the principles of cash management can help him increase his savings so that he has more funds set aside for his retirement.