Cash is the most insecure asset you can have, warns Ryan McCarty, CFP from McCarty Money Matters. It’s physical, doesn’t earn interest, and is subject to inflation, making its purchasing power decrease over time. Experts suggest keeping a small amount of cash for emergencies, but any extra should be stored in a secure location, such as a safe deposit box or bank account. McCarty advises keeping cash to a minimum in case of theft or fire.
Is it Smart to Have Cash?
When it comes to financial security, many people believe that cash is king. But is it really the best asset to have? According to Ryan McCarty, CFP from McCarty Money Matters, cash is actually the most insecure asset you can have from a security point of view. In the case of fire or theft, it’s important to keep your cash to a minimum in the house.
Why is Cash Insecure?
Cash is insecure for a number of reasons. First, it’s physical and can be lost or stolen. Unlike digital assets, you can’t just cancel a cash bill and get a new one. Second, cash doesn’t earn interest, which means that it’s not growing in value over time. Finally, cash is subject to inflation, which means that its purchasing power decreases over time.
Given these factors, it’s clear that cash isn’t the best asset to have from a financial security standpoint. However, that doesn’t mean that you shouldn’t have any cash at all.
How Much Cash Should You Have?
The amount of cash you should have on hand depends on your individual financial situation. However, most financial experts recommend keeping a small amount of cash on hand for emergencies.
According to Ryan McCarty, a good rule of thumb is to keep your cash to a minimum in the house. This means that you should only keep as much cash as you need for day-to-day expenses and emergencies. Any additional cash should be kept in a secure location, such as a safe deposit box or a bank account.
In conclusion, while cash may seem like a secure asset to have, it’s actually the most insecure asset you can have from a security standpoint. Keeping your cash to a minimum in the house is a good rule of thumb to follow, as it can help protect you from loss or theft. However, the amount of cash you should have on hand depends on your individual financial situation. To ensure that you’re making the most of your assets, it’s always a good idea to consult with a financial expert like Ryan McCarty.
References for « Is it smart to have cash? »
- Forbes – « Is Cash A Good Investment? »
- Investopedia – « Why Cash Is King When Investing »
- CNBC – « Why having cash on hand is more important than ever »
- The New York Times – « The Case for Holding Cash »
- Money Crashers – « 7 Reasons Why Holding Cash Is a Good Investment Strategy »
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