Asked by Anonymous
Asked on 14 Nov 2018
Shouldn't we try to utilise the cash on hand into investment to make the money work itself?
Interesting question! Not everyone is informed enough to know what to do with their money, hence turn to the next most sensible thing to do which is to save. I think it's especially so for our parents' generation and older to prefer to "see" their money and save cold hard cash. Another reason could also be skepticism on the performance of the economy, so people keep their cash closer and tighter.
14 Nov 2018
It is a personal thing I guess. You can ask the exact same question to 100 people and you might have 100 unique answers.
Some people feel safe when they can see the cash in hand. Some people might have bad experience with investments so they decided not to dabble in it.
Some people may not be financial savvy enough to invest. Some people may not have time to invest. The list goes on and on but ultimately, it depends on an individual on how they handle their money.
Security: There's a sense of security and comfort people take knowing there is accessible money.
Knowledge: If people don't understand how investing works, it's quite difficult to convince them to do it, especially when scams are more prevalent than ever.
Some may not be as savvy and prefer to keep their money in form of cash, could have misconception investments is game of luck. Others may feel economy is not doing well and prefer cash since 'cash is king' (most liquid form of currency and easiest to use compared to like real estate).