Yes, it's true... and that seems counterintuitive ⁣⁣

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It's a situation that many can only dream of. However, a reality that some of us are already living (even though they don't realize it)⁣

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I'm not talking about having “too much money” that's an entirely different thing. I simply mean that too great a proportion of our total wealth may be sitting in the form of cash in a bank account. There's a distinction...

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Cash is simply one type of asset. And it's not really designed to just sit there long term. This is because it suffers from inflation and loses value. The second we have too great a proportion of our wealth stored as cash we are losing wealth unnecessarily (…and missing out on some great opportunities too) ⁣⁣

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If you ask me - cash only really 2 purposes: ⁣⁣

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• 6 month emergency savings buffer ⁣⁣

OR

• Short term spending goal (less than 2 years time horizon)⁣

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Oftentimes I see cash sat in the bank account of others with no real assigned purpose. You see money/currency is not really intended to be a long-term store of value.⁣

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Therefore, in my opinion, this idle cash represents missed opportunities to grow your money. One has just got to learn how (or seek the opinion of a qualified professional if they would prefer some guidance)⁣

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⁣So hopefully that clears up what I meant by “Too Much Cash In The Bank” as well. Remember, I'm not suggesting that you have some sort of egregious overabundance of wealth – merely that you could be allocating your resources better so you valuable hard work is not being frittered away… and to get your cash compounding in value taking you closer and closer to financial freedom⁣