Personal Money Tips

I came to this conclusion. Cash is no longer an asset! Yeah, you read correctly. With inflation rearing its head rather alarmingly, prices of almost everything has gone up. I’ve noticed something happening over the past few months and wonder whether cash can still be considered an asset.

When I say cash, I mean anything that’s liquid that gives you very low return.

If you define an asset as something that will either :

• grow in value over time, or
• produce an income or throw off interest,

then, I have to say that cash is no longer an asset. It depreciates like heck, interest from FD or savings account (where I live anyway, is peanuts). Yeah, some of you lucky souls out there have online banks available, I don’t.

There is not much motivation to hang on to cash. Looking at the way things are heading, there’s limited option to grow your money. Without getting into sophisticated investments like collectible, it leaves me with properly selected real estate, value stocks and some mutual funds.

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