I explain how cash is both trash and king.Cash is king. It helps you not lose your shirt or lose your mind, it helps you pay down your debts, it helps you prepare for the unexpected (emergency savings), it helps you buy stocks at a discount when the stock market is crashing (see Warren Buffett), and it protects you from risks (e.g. buying a house with all cash, if you can). So what\u2019s the conclusion? The conclusion is that cash provides safety in the short term and provides opportunities in the short term as well.But also, cash is trash. Or at least it can be trash, specifically if you have too much cash or cash not used correctly. Cash loses value every year due to inflation, so it doesn\u2019t grow: It shrinks. Also, if you don\u2019t utilize your cash to buy assets \u2014 like stocks \u2014 when they\u2019re \u2018cheap,\u2019 then you \u201cain\u2019t doing it right.\u201d The conclusion: if you\u2019re using cash for anything beyond the short term or maybe even immediate term, your cash is trash.So is cash trash or is cash king? Well, it\u2019s both. And that\u2019s not a contradiction because I\u2019m not saying cash is trash and king in the same respects.You might also wonder whether when we say \u201ccash is king\u201d or \u201ccash is trash\u201d we are committing ourselves to saying cash is the worst asset or the best asset.First, let\u2019s grant that cash is the worst asset and best asset in some senses \u2014 cash is the worst asset in the long-term and the best asset in the short-term. But secondly, I don\u2019t think this is the best way to view assets. Different assets do different things, so different assets have different places\/purposes in your portfolio. However, this wouldn\u2019t mean that there shouldn\u2019t be constraints. It\u2026<\/p>","protected":false},"excerpt":{"rendered":"
Eu explico como o dinheiro \u00e9 lixo e rei. O dinheiro \u00e9 rei. Ajuda a n\u00e3o perder a camisa ou a cabe\u00e7a, ajuda a pagar [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2581,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts\/2580"}],"collection":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/comments?post=2580"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts\/2580\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/media\/2581"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/media?parent=2580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/categories?post=2580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/tags?post=2580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}