{"id":292,"date":"2022-03-22T16:45:54","date_gmt":"2022-03-22T16:45:54","guid":{"rendered":"https:\/\/compoundingstacks.com\/?p=292"},"modified":"2022-04-04T15:08:33","modified_gmt":"2022-04-04T15:08:33","slug":"how-much-is-too-much-in-savings","status":"publish","type":"post","link":"https:\/\/compoundingstacks.com\/how-much-is-too-much-in-savings\/","title":{"rendered":"How Much Is Too Much In Savings?"},"content":{"rendered":"\n
The problem for many people is that they save too little. Some, however, are saving too much because they are wasting too much money. Having too much cash can be problematic\u2026<\/p>\n\n\n\n
Saving money is always good, but when you have a lot of it, there may come a time when you need to think about how much you should save and where that money should go. <\/p>\n\n\n\n
We have written this guide to give you everything you need to know about saving and whether you are saving too much.<\/p>\n\n\n\n
The king of money is cash except when cash interest rates are lower or when prices go up. The cost of living is rising, but your savings remain flat. <\/p>\n\n\n\n
The opportunity cost of having a lot of extra cash is high. Your cash balances may be large today, but if they stay the same, they will not outpace inflation and will actually devalue. <\/p>\n\n\n\n
Savings that do not earn more than inflation are actually losing purchasing power because inflation is a stealth tax.<\/p>\n\n\n\n
It is nearly certain that you will lose a certain amount of purchasing strength every year if you keep all of your nest egg in conservative cash. <\/p>\n\n\n\n
Consider the price of a family sedan today compared to thirty years ago. Would you still be able to buy that car if you had kept that cash in a bank for the past thirty years? <\/p>\n\n\n\n
It is also important for people hoarding cash to consider the reasons for their actions. What are they trying to accomplish?<\/p>\n\n\n\n
Are you intimidated by big-ticket expenditures? Why do you need so much cash when you have such a poor money history? Knowing that too much cash can be detrimental to your monetary security.<\/p>\n\n\n\n
Saving money is always a smart idea. However, if you put too much money into an emergency fund, you might lose money to inflation. <\/p>\n\n\n\n