Why is cash so important and where does it stand among our investments?
It is often said that cash is king, and the idea of being flush with money has been portrayed as the ultimate pipe dream. Cash does rule everything around us, infiltrating every aspect of our lives while inspiring everything from art, movies to even music: Think The O’Jays’s For The Love Of Money (yes, that ode to dollar bills popularised by the Donald Trump fronted reality show The Apprentice), ABBA’s Money, Money, Money or even Jessie J’s Price Tag.
But when it comes to investing, there is such a thing as having too much cash. In that instance, consider parking your money into assets, as that could give you a better return than cash itself. Cash, on the other hand, is also seen as a life-buoy, especially during rainy days. You want to have enough cash — or liquid funds — on hand so you are not forced to sell any assets you have at a loss in times of need.