Nadlique’s problems with having cash on hand

I actually have a big problem with leaving too much resources in the form of cash in my bank account. The problem is, I tend to overspend. Also, I’m not really good at sticking to a budget. I often use budgets to project my spending but when it comes to actually adhering to it, I’m hopeless.

I have been thinking to myself, how do I deal with this problem?

Well, perhaps the notion of “Asset Rich and Cash Poor” is not so bad at all.

One way that I have thought about is freezing my money. What I mean by that is probably by way of converting cash into something else. Converting the cash into cold hard assets.

First thing that I need to consider is by having enough money in my emergency account and enough money to cover my monthly expenses. Then all my other/extra savings need to be converted into assets quickly. Some options are:

1. ASB or Tabung Haji or Fixed Deposit Accounts (i.e. hard to reach places)
2. Buy mutual funds/unit trust
3. Buy stocks
4. Buy investment properties (mortgage on my property = forced saving)

In other words, I want to try to have as little “liquid cash” as possible. I’m just too afraid of spending it all if I have access to it 24/7.

Personally, I think that being “Asset Rich and Cash Poor” is better than having too much cash on hand and end up with spending it all. But really, I think this applies to the early stages of my financial freedom journey. Perhaps, when I am indeed financially free in the future, I can be a tad more extravagant in my spending.

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Disclaimer: This article is not a specific nor general advice on managing or investing your money. This article does not constitute a recommendation nor does it take into account your investment objectives, financial situation nor particular needs.

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About nadlique

This blog is about the journey of a 28-year-old Malaysian towards financial freedom. This blog was started back when the blogger was 21 years old. However, his journey towards financial freedom had begun way before that. Materials such as investing, business, entrepreneurship, equities, and real estate are presented. The author also posts his thoughts and observations on life in general.

Comments

  1. lonelyplanet92 says:

    well, u can keep in ASB, if ur ASB is full, then u can keep in ASD/ASW, which pay better interest than FD for sure

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