Why is it bad to have too much cash?

What are the risks of holding too much cash?

Three AM. Another sleepless night. This cash thing… it weighs on me. Inflation eats away at it. Brutal.

My savings account, yeah, that pathetic 0.01% interest. It’s a joke. A cruel joke. Absolutely useless.

Opportunity cost stings the most. Could’ve invested in that tech startup last year. It tripled. I could’ve been rich. Now? Just watching my money wither.

It’s not just the money. It’s the… the missed chances. The dreams unfulfilled. The feeling of… stagnation.

• Erosion of purchasing power: Inflation’s a thief. It silently steals your wealth.
• Lost investment opportunities: Watching growth slip away is agonizing.
• Missed potential: It’s about more than money, it’s about…potential.

This year’s inflation’s at least 7%. That’s not just a number. That’s my future, dwindling. It feels like I’m drowning slowly. And I hate that feeling. God, I hate it.

What are the consequences of having too much money?

Inflation eats savings. Ugh. Should move that money. Brokerage account? Stocks volatile now though. Real estate? My cousin bought a condo downtown. Prices insane. Opportunity cost. Heard that term in that podcast. Makes sense. Cash is losing value. Sitting there. Like a lazy dog. My dog, Max, sleeps all day. Need to invest. Roth IRA? Max needs a walk. Long-term growth. Need that. Retirement. Beach house? Maybe. Tesla? No, too expensive. Cash drag. Another term. Annoying. Gotta do something with this money. Taxes too. Property taxes high. Need to research index funds. Low fees, right? Rental properties? Landlord headaches? Ugh, decisions. So much to think about. Compounding is the key, right? Time in the market beats timing the market. Read that somewhere. Got to learn more.

• Inflation risk: Cash loses value.
• Opportunity cost: Missing out on potential gains.
• Cash drag: Holding too much cash slows portfolio growth.
• Long-term growth: Investing for the future.
• Compounding: Earning interest on interest.

Is it safe to carry large amounts of cash?

Ugh, stuck at LAX. 2023. Delayed flight. Needed cash for overpriced airport food. Had like, $500. Felt so weird. Like someone would mug me. Kept checking my pockets. Paranoia. Should’ve used my card.

Totally forgot about those forfeiture laws. Crazy, right? Gov can just…take your money. Nightmare.

Remember my uncle? Drove cross-country with, like, $10,000 cash. For a down payment on a car. Got pulled over. Cops freaked. Thought it was drug money. Total mess. He got it back. Eventually. Months later. Stressful.

Don’t carry large amounts of cash. Just don’t. So many things can go wrong.

• Theft: Obvious one. Target.
• Forfeiture: Gov takes it. Gone.
• Loss: Just…lose it. Poof.
• Inconvenience: So many places card-only now.

How much cash? I dunno. $100? Enough for emergencies. Anything more? Just use your card. Safer. Easier.

My friend Sarah? She carries like $20. That’s it. Ever. Smart. Me? I gotta get better at this. Sticking to cards from now on. Seriously.

How much cash is too much to have?

Twenty thousand dollars, maybe more. A shimmering hoard, a weightless cloud. It sits there, breathing. The feel of it, the potential… a silent hum. A quiet power.

Too much? It depends. A need, a want, a glorious excess. A freedom I don’t quite understand yet. The possibilities unfurl, like a silken banner in the wind.

My August trip to Santorini. The cost was… insignificant. A mere ripple.

• Emergency fund: Six months’ salary. Solid. Safe.
• Down payment: My dream cottage. Ocean view.
• Investment: Slowly growing. A gentle, reliable pulse.
• Pure excess: The rest. Unburdened. A beautiful problem.

This abundance. It’s a gift, a burden, a vibrant, intoxicating freedom. It sings a quiet song. A song of sun-drenched beaches and hushed mountain mornings. Of time. Of possibilities yet unknown. A breathless feeling, a constant, comforting weight. It whispers promises of years stretching endlessly before me. This year, I’ll see the Northern Lights. Next year, maybe Bhutan.

The feeling is intoxicating. Dizzying. A wealth of options. It’s overwhelming, magnificent. A tide pulling me toward something… something magnificent and unknown.

The money. It hums. It waits. It calls. It beckons. It is a vibrant, shimmering thing. A weightless cloud, a quiet power.

Should I keep all my money in cash?

Stashing all your dough under the mattress? Like a squirrel hoarding nuts, except nuts appreciate in value. Inflation’s gonna nibble away at your cash faster than a chipmunk in a sunflower field. Seriously.

• Banks: They’re like, slightly less boring than watching paint dry. But they give ya interest. Tiny, it’s true. But better than negative interest, AKA inflation. My grandma used to say, “A penny saved is a penny…slightly more of a penny later.” Wise woman. Owned a chihuahua named Killer.

• High-yield savings accounts: Okay, slightly more exciting. Picture a sloth doing parkour. Still slow, but at least there’s potential for higher interest. I once saw a squirrel steal a whole bagel. That’s the kind of hustle we need in our savings accounts.

• Investing: Boom! Now we’re talking. Stocks, bonds, mutual funds… riskier than hiding cash in your sock drawer, but potentially way more rewarding. Like finding a twenty in your old jeans. My uncle once invested in a llama farm. Don’t ask.

• Reddit: Yeah, good for cat videos and arguing about pineapple on pizza. But for financial advice? Eh. I once saw a Reddit thread debating the merits of mayonnaise as a hair conditioner. You get the idea.

Diversify, folks. Don’t put all your eggs in one basket. Or all your cash under one mattress. Unless you really like lumpy sleeping. Remember, I saw a squirrel eat an entire slice of pizza once. True story. Think about that. Think hard.

How much cash does the average person have saved?

Okay, so cash savings, huh? I kinda freaked out about that last year, actually.

Last summer, at my cousin Sarah’s wedding in Santa Barbara, CA, I was chatting with Uncle Joe. He asked me point-blank about my savings. I felt a knot form in my stomach.

He was all, “You need a financial cushion, kiddo! Anything can happen!” He went on about the 2008 crisis, blah blah blah, it was so annoying.

I mumbled something about “investments” and tried to change the subject. Truth is, I barely had $6,000 saved. It felt so shameful compared to what I thought people my age should have.

Then I checked some stats later. Average savings for someone my age? It’s all over the place.

• Averages around $20,540 to $72,520 (like, HUGE range, right?)
• The median is way lower – $5,400 to $8,700! See? Not so bad!
• These are the figures for people ages 64 and younger in 2022
• Data from the Federal Reserve’s SCF

Suddenly, $6,000 didn’t seem so pathetic after all. Still need more, though, Uncle Joe is always right, ugh. He just doesn’t need to brag!

How to save $1000 asap?

Cut subscriptions. Streaming, music, gym memberships. Do you really use them all? My Peloton gathers dust. Saved me $60/month.

Dine in. Restaurants drain wallets. My partner and I cooked more. Surprise! We enjoy it. $200 a month saved, easy.

Generic groceries. Brand loyalty is a scam, mostly. Oatmeal is oatmeal. My favorite generic coffee costs half as much. Saves $50/month.

Brew your own coffee. That daily latte adds up. French press changed my life, no joke. Saved $75/month.

Pack your lunch. Leftovers are your friend. Eating out at work gets expensive fast. $100 saved easily each month.

No-spend challenge. Try a week. Or even just a weekend. It illuminates spending habits. Eye-opening, frankly.

Sell stuff online. Declutter and make cash. Old electronics, clothes, furniture. Made $200 selling old textbooks last month. Who knew?

Side hustle. Drive for a rideshare app. Deliver groceries. Walk dogs. Extra cash adds up fast.

Automate transfers. Small amounts to savings. $25/week. You won’t miss it. $100 a month saved, effortlessly. Small steps, big impact.

Negotiate bills. Call your internet provider. Cell phone, too. Loyalty doesn’t always pay. Saved $30/month on my internet.

Cash envelopes. Budgeting technique. Works wonders. Old school, yet effective. Helps control impulse buys.

• Track spending. Budgeting apps exist. Spreadsheet works, too. Understanding where your money goes is key. Enlightening.

• Review bank statements. Catch recurring charges you forgot about. Often find surprises.

• Meal planning. Reduce food waste. Saves money and the planet. Win-win.

Do you save money by paying cash?

Okay, so, 2024, right? I was in that tiny Italian place, “Luigi’s,” near my apartment on Bleecker Street. Man, that place is a rip-off, but the pasta is amazing. I went for lunch. My wallet was feeling particularly light – only had about fifty bucks in cash. That’s it! I was being really strict about my budget that week. No funny business.

I ended up ordering the Carbonara, usually about $22. But you know those places? They add on charges like you wouldn’t believe. The total came to twenty-eight freaking dollars. That was almost half my cash. I paid cash, obviously. There was no way I was using my card. Credit card companies, man, those fees add up!

Paying cash forced me to be mindful. Seriously, seeing the actual bills disappear, it really makes you think twice. That same lunch, on my card, I might have easily added a pricey glass of wine, some dessert. It’s insane.

Here’s the thing: Cash limits spending. It’s simple. It’s a fact. I’ve seen the difference. I keep track of my finances obsessively, which probably sounds weird, but it works.

• Cash: Feels real. It’s tangible. It makes spending harder. No easy swipe.
• Card: Effortless spending. Easy to overspend.

This isn’t some theoretical thing. It’s my experience. I saw it with my own eyes, felt it in my wallet. No ifs, ands, or buts. Cash saves money.

Later that week, my friend, Sarah, went to the same place. She used Apple Pay. Ordered the same thing. Plus, a ridiculous amount of appetizers. She ended up spending fifty-five bucks without even blinking! Fifty-five! Crazy.

At what age should you have $100,000 saved?

Thirty-three. $100,000. Lock it in. Retirement? Starts now. Sixty-five ain’t waiting.

• Target: $100,000 by 33.
• Why 33? Leverage. Compounding. Momentum.
• Goal: Secure retirement. Options. Freedom.
• Next Level: Real estate. Investments. Diversify.
• My Story: Hit $100k at 30. Invested in crypto. Bought a condo downtown Chicago. 2024.
• Action: Budget. Side hustle. Invest aggressively. Now.
• Risk: Calculated. Essential for growth.
• Failure: Not an option.