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In an inflationary environment, I hear so many people saying cash is trash all the time.
Do you believe me if I tell you only the rich can afford to say that?
For those of us who still depend on our salaries and who have loans to service, we better have more cash on hand.
In fact, we better have much more cash on hand in case another recession hits.
PM Lee has recently warned that a recession is possibly coming and economists think it could last two to five years. (Source: CNA.)
Yes, two to five years.
Some gurus will tell us not to worry because we can always borrow money.
Well, those of us who have tried to borrow money before will know it is not easy to do so especially in an environment where credit is tight.
Coincidentally, central banks are tightening money supply to fight inflation.
Banks are fair weather friends and they mostly prefer to lend money to people who already have money.
Even if we manage to borrow some money, it is likely to be costly.
With interest rates going higher, it would definitely be the case.
To those who can afford to say cash is trash, please remember that most people are not in a position to think that way.
Making them think that way is irresponsible and almost wicked.
To those who are listening to people who say cash is trash, consider our circumstances.
No one cares more about our money than we do.
Things are likely to worsen in the next two years or more and we must do what is right for ourselves.
Peace of mind is priceless.
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