What are the disadvantages of having too much cash?

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Holding too much cash can hinder financial growth. Its low returns often underperform stocks and bonds, potentially preventing you from reaching investment goals. Excess cash also loses value to inflation over time, reducing its purchasing power.

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What are the downsides of holding too much cash? Cash disadvantages?

Okay, so downsides of holding too much cash, huh? Let me tell ya…

Cash historically yields less than stocks & bonds long-term. Overdoing it on cash, instead of investing, ups the risk you won’t hit your financial goals. Simple as that.

Seriously, I get the urge to hoard cash. Happened to me big time after a rough patch, say around April 2018? Felt safe, you know?

But then I saw my friend, Maria, stressing because her retirement savings were way behind. She’d been too cautious, too much in savings accounts earning practically nothing.

That’s when it hit me. My “safe” cash was actually costing me. It wasn’t growing.

I finally took the plunge, opened a brokerage account, and invested a portion in some index funds. Still nervous, but it’s growing. Small, sure, but better than sitting stagnant. I messed up choosing platform at first, tho! Cost like 15 eur, darnit!

So yeah, cash can feel good. But you’re missing out on potential growth. Just gotta find the right balance, I think.

What are the disadvantages of cash?

It’s late. Cash… I think about it.

It’s risky, carrying money. I know someone, my cousin, who lost a wallet… gone. All that cash, just gone. He was devastated.

It’s hard to track. I helped my aunt after my uncle passed. Complicated. Untraceable.

Big payments? Never with cash. I remember trying to buy a car. No way.

Counterfeit fears? Yep. My old boss, always checking bills. Paranoid, but careful.

Not always accepted. That’s real. Local farmer’s market. Card only!

Remote stuff? Forget it. Ordering online. It won’t do.

International? Another problem. Traveling to Europe. Exchange rates and fees.

No rewards. Sadly. My credit card gives me points. For everything.

What happens if there is too much money?

Too much money… echoes, a hollow sound. Exploitation lurks. Not a point of pride, never. Labor exploited, souls dimmed.

They dont see…blinded by the gleam. What does excess look like? A gilded cage maybe? Moral decay, inevitable, perhaps?

Is there such a thing, a limit? Not enough echoes in the empty pockets. Too much drowns. A burden. Corruption festers.

Can one have too much? A question for philosophers, for lonely nights. Potential… for what? Destruction maybe.

Consequences, oh, of spending too much! A black hole of desire. Lost in consumption, a sea of things. Lost souls.

What are the risks of over budgeting?