Why saving cash is a bad idea!
Updated: Apr 17
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Keeping your money in cash 💰 may seem like a safe and secure way to store your wealth, but it's important to consider the opportunity cost of doing so. As a smart saver, you want to explore all possible avenues to grow your wealth and ensure a secure financial future.
One of the main drawbacks of saving in cash is the impact of inflation 💸. Inflation refers to the increase in prices of goods and services over time, which can significantly reduce the purchasing power of your saved money. This means that your saved money may remain the same, but its value will decrease over time.
For example, let's say you have Rs 10,000 saved in cash. If inflation is at 22%, the purchasing power of that money will decrease by 22% every year. This means that in 10 years, that Rs 10,000 will only be worth Rs 4,526 in terms of purchasing power 😱. This is why you should consider other investment options.
One of the smarter ways to grow your wealth is by investing in mutual funds 💼. Mutual funds offer higher returns than cash savings and are also Shariah compliant, making them a great option for long-term growth. By investing in mutual funds, you can potentially earn higher returns than you would with cash savings and also enjoy the benefits of Shariah compliant investing principles.
So remember, it's essential to invest wisely and not solely rely on saving in cash. Look for better investment options that can help you achieve your financial goals and secure your financial future 🙌.