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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