22 October 2012

Exercising Financial Prudence Tip #3 - Don't Keep Your Money in Your Drawer

As a matter of fact, I used to do that as a teenager. I would dump whatever spare cash I have into my drawer and when I have free time, I would count my money. You see the problem? The amount of money in my drawer will never grow unless I continue to dump my spare cash. So let's say I have 1000 dollars inside and I decided to stop dumping money, and after 10 years, it's still 1000 dollars, now the question is, how much is my 1000 dollars worth after a decade?

If you factor in Singapore's Annual Inflation Rate, that same 1000 dollars would have become "smaller" i.e. I need to pay more than 1000 dollars to buy what I could have bought with the same amount of money 10 years ago.

Pay $223.28 More!

So think about it, have you found a better place to keep your money?

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