X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Women's Weekly: Penny wise, pound wiser - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Oct 3, 2009

    Women's Weekly: Penny wise, pound wiser

    Keeping cash in the cupboard is a strict no-no

    There is a beautiful line from P.S. I Love You, "No matter how hard you hug your money, it never hugs back." But hug a child and you will receive the warmest, sweetest hug back. A hug filled with sunshine and smiles. A hug so warm that all your troubles , all your worries will melt away, and be replaced by the tinkling laughter and laughing wind chimes.

    Yes, children do that to you. And then you know why they are called angels - little angels who make you search for that ephemeral rainbow and smile in glee when you spot one with your child.

    So, it's no wonder that we want the best for them. They, who make our present so beautiful have a right to a secure future and so, while we may not want to hug money, we definitely want to store it, save it and make it available for our children whenever they want it.

    So whenever we can, we save. End up buying one saree less or postpone the much needed AC or simple forgo a fancy restaurant dinner in the hope that the money saved will be one more warp, one more weft in the security blanket that we weave for our children.

    All the money that we save and all the money that we find in our husband's trousers left in the laundry basket gets quietly stashed in the cupboard, to secure the future of our children.

    If you think that the cupboard is the most safe, most secure place to keep your cash, you couldn't be more wrong.

    As our children grow up, so do their needs, and their demands. Household budgets tend to get stretched and readjusted, in order to meet these demands. And then, when we fall short of cash, we conveniently dip into the cupboard, into the pile that we have actually stashed away for our children, to pay for the detergent powder just ordered or the cable guy knocking on the door unannounced.

    We promise ourselves to replace the money that we take from our children's future fund the very next day. Then the next day we forget, only to remember it late in the night, when we are off to sleep after a hard day at work and a chronic backache. We promise ourselves, "Tomorrow, for sure!" And then, that tomorrow never comes.

    Many tomorrows later, we wonder, "Where did all the money that we so painstakingly kept in the cupboard suddenly deplete or sometimes even completely vanish?

    If you thought that this was the only reason why cash should not be kept in cupboard, there are many more to come. As we have previously spoken about inflation, we can see how the money kept in the cupboard does not increase, inflation however does increase, and so do our dreams for our children.

    So how does the Rs.50, 000 which we painstakingly saved, help us when a few years down the line after taking into account inflation, results in actually worth just Rs.5000?

    In an age of plastic dolls and plastic money, cash becomes an outdated source. Mutual funds, bankers, etc prefer the cheque payment option. So, if you want to invest in an SIP, and let it mature in time for your child's education or marriage, it makes sense to keep the same money, which you would otherwise put away in your cupboard, in a bank where it is more secure and can also get you returns based on a rate of interest.

    A nugget of advice - Do not take cash from your husband too. Cash gets spent easily. Take a cheque instead. And a hefty one too! Deposit it and then use it judiciously by means of investments.

    And, at the cost of being repetitive, invest that money lying in the cupboard. Fixed deposits, stocks, mutual funds, anywhere but the cupboard!

     

     

    Equitymaster requests your view! Post a comment on "Women's Weekly: Penny wise, pound wiser". Click here!

      
     

    More Views on News

    When to Sell Your Investments (Mutual Fund Corner)

    Oct 1, 2015

    We often hear how important it is to start saving and investing to meet your financial goals, but little is said about selling investments.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    MARKET STATS