On... Cash is Trash?
Cash is Trash. Cash is King. Which one is true? Both actually, but perhaps at a different time frame and depends on the situation. Generally, you don't want to hold cash for a very long term. This is due to inflation. Official number of inflation ranges from 3 - 8%, but if I would guess, I would say its usually closer to 10%. Of course, inflation is a very personal thing and it depends from one individual to the next. Thats where the saying cash is trash comes from. I first heard about it from Ray Dalio. Basically, what it means is if you put your money under the mattress, after a year, it will lose 10% of purchasing power ( or whatever the inflation number you believe it to be ). In the past, this is solved by putting your money in the bank and your bank interest will compensate for the lost of purchasing power. These days, bank interest is very close to 0%. So, you cannot solve the problem of inflation anymore and you're doomed to accept the lost of purchasing power over the ...