Owning paper money and fat bank account considered by majority as wealth. But in reality it’s partially true.
Look in Forbes 100 richest people in world clearly traceable pattern of diversified portfolio investment. That means that only small part of wealth kept in form of liquid cash for current expenses. Rest secured in real estate, stock, intellectual property ownership, manufacturing units.
Most people believe keeping money in bank account is best option because it’s safe. But nothing could be so far from truth as previous statement. Bank can go bankrupt any moment, countries default happening regularly, bank account hacked, software collapse and many more ways. To prevent from finding yourself on roadside with no resources for life you must learn to invest money. It’s something what we were not taught in school or at home because most of our parents have little knowledge how to multiple saved money.
All money in world considered fiat currency. None of currency backed up by resources (gold, silver) and not convertible in physical resource. Meaning that paper money in your wallet it’s only papers which government approved for general use and considered legal to use. That makes money vulnerable to sharp increase / decrease in value.
Holding big sum of cash not the best idea:
1) Soviet Union’s ruble overnight lost all value and my family lost all lifelong savings
2) Nov 2016 Indian Prime Minister did demonization without any previous warnings, all 500,1000 Rs notes became illegal to use.
Counties like Japan, China, USA shifting to cashless society. About this topic I’ll write separate article.
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