By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
GotResolve Old Logo GotResolve Old Logo
  • How To
    How ToShow More
    Microsoft Rewards guide
    Microsoft Rewards: Earning Points and Redeeming Prizes
    Zohaib Ali
    By Zohaib Ali
    bedroom-1006527_1280
    How to brighten up a child’s life through captivating wallpaper in their bedroom
    Team GotResolve
    By Team GotResolve
    Google flights pros and cons
    Google Flights: The Ultimate Guide to Finding Cheap Airfare
    Nadeem Akhtar
    By Nadeem Akhtar
    hulu error code p-dev320
    How to Fix Hulu Error Code P-DEV320: Troubleshooting Guide
    Zohaib Ali
    By Zohaib Ali
    Medical Congress Perfectly
    How To Hold A Medical Congress Perfectly
    Team GotResolve
    By Team GotResolve
  • Marketing
    • SEO
    • Social Media
    • Internet
    MarketingShow More
    guest post guide
    #1 Guide on How to Get Published Your Guest Post
    Nadeem Raza
    By Nadeem Raza
    Google Local Guide Program
    Local Guide Program: Be a Local Guide, Explore, and Share
    Nadeem Raza
    By Nadeem Raza
    picuki
    Picuki: Picuki Alternatives, Features, and Functionality
    Zohaib Ali
    By Zohaib Ali
    podcast-7779510_1280
    Convert Blogs to Engaging AI Video Content
    Team GotResolve
    By Team GotResolve
    man in blue dress shirt sitting on rolling chair inside room with monitors
    How Your Business Can Improve Its Digital Marketing Strategy
    Team GotResolve
    By Team GotResolve
  • Technology
    • Gadgets
    • Mobile & Tablet
    • Software
    • Cameras & Photography
    • Electronics
    TechnologyShow More
    orange USB cables
    Revolutionizing Connectivity with Premium Data and USB Cables
    Team GotResolve
    By Team GotResolve
    office-1356793_1280
    Power BI Overview: Microsoft’s Business Intelligence Tool 
    Team GotResolve
    By Team GotResolve
    app development
    The importance of mobile app development for a startup?
    Team GotResolve
    By Team GotResolve
    hulu error code p-dev320
    How to Fix Hulu Error Code P-DEV320: Troubleshooting Guide
    Zohaib Ali
    By Zohaib Ali
    web development
    Why use video on your website? 
    Team GotResolve
    By Team GotResolve
  • Travel
    TravelShow More
    maldives-3220702_1280
    Why The Maldives Is Your Best Tropical Holiday Destination!
    Team GotResolve
    By Team GotResolve
    Google flights pros and cons
    Google Flights: The Ultimate Guide to Finding Cheap Airfare
    Nadeem Akhtar
    By Nadeem Akhtar
    Outdoor timber floor decking
    Transform Your Outdoor Living Space with Timber Decking
    Team GotResolve
    By Team GotResolve
    man standing inside airport looking at LED flight schedule bulletin board
    The Vital Role of Corporate Travel Agents in Entrepreneurial Landscape
    Team GotResolve
    By Team GotResolve
    SEA
    Discover the Perfect Escape at Sea View Suites
    Team GotResolve
    By Team GotResolve
  • More
    • Automobiles
    • Business
    • Cloud & Hosting
    • Education
    • Entertainment
    • Fashion & Lifestyle
    • Finance
    • Food
    • Health & Fitness
    • Home Improvement
    • International
    • Investment
    • Real Estate
GotResolveGotResolve
Font ResizerAa
Search
  • How To
  • Education
  • Travel
  • Finance
  • Marketing
    • Social Media
    • SEO
  • Tech
    • Cameras & Photography
    • Electronics
    • Gadgets
    • Mobile & Tablet
    • Software
  • Business
    • Branding
    • Finance
    • International
    • Investment
    • Real Estate
  • More
    • Fashion & Lifestyle
    • Entertainment
    • Health & Fitness
    • Home Improvement
Have an existing account? Sign In
Follow US
Copyright © GotResolve 2025. All Rights Reserved.
GotResolve > Blog > Finance > The Value of Cash: 5 Reasons Why Holding Cash is a Smart Move

The Value of Cash: 5 Reasons Why Holding Cash is a Smart Move

Team GotResolve
Last updated: May 9, 2023 8:02 pm
By Team GotResolve
Share
7 Min Read
The Value of Cash
SHARE

We’ve all heard the advice that “cash is king,” but it’s not always easy to know when you should hold onto your cash and when you should spend it. In this post, we’ll take a closer look at how holding cash can help your business in five unique situations:

Contents
Cash is always an option.You don’t need to be a trader.Cash allows you to diversify your portfolio.You can hold onto cash in case you need it.Cash can be helpful in times of crisis.There you go!

Cash is always an option.

Holding cash is always an option. There are times when holding cash is a smart move and there are also times when it’s not.

Cash can be used as a haven in times of crisis – but it can also be used as an investment opportunity or a diversification tool for your portfolio. If you want to understand the argument of holding cash vs investing, you need to know the pros and cons of each side.

You don’t need to be a trader.

The fact is, you don’t need to be a trader. A lot of people think they do, but they don’t. And if you’re one of them, it’s likely because a wrong decision has burned you in the past, and you now want to make up for that loss by trying again–this time with more knowledge and experience under your belt.

But here’s the truth: not every investment has an opportunity for an immediate turnaround like stocks or bonds might provide. Cash does not have this characteristic, nor does it necessarily make sense for every situation (you wouldn’t just keep all your money in cash).

But when used appropriately, holding onto some amount of cash can help protect against losses while giving investors peace of mind knowing that no matter what happens next with their investments or markets at large (or even personal finances), at least they’ll still have something left over after everything else has been taken care off first!

More Read

donate-5446358_1280
How Text Donation Services Are Empowering Nonprofits in 2024
Title Insurance in Australia: Everything You Need To Know
High Risk Merchant Accounts at Highriskpay.com
Five Reasons to Use a Mortgage Broker
Importance of a Salary Paycheck Calculator

Cash allows you to diversify your portfolio.

Cash is a low-risk investment, meaning it will not lose value over time. If you have more than one type of investment – such as stocks or bonds, it can be challenging to determine how much risk is being taken on by each type of asset in your portfolio.

Cash provides a simple way for investors to balance out their investments by providing a guaranteed return without introducing additional risk into their portfolios.

You can hold onto cash in case you need it.

Cash is an excellent way to hedge against inflation. Cash can be used as a hedge against inflation because it’s not subject to the same currency debasement as other investments. For example – if you have $1 million in gold and the price goes up 10%, your investment has grown by $100,000.

However, if the dollar loses 10% of its purchasing power due to inflation (and this tends to happen over long periods), then your $1 million will only buy what $900,000 could have purchased before–meaning that your money has lost value despite rising asset prices elsewhere in markets like stocks or real estate.

Cash can also be used as an emergency fund when unexpected expenses arise or as an extra cushion during uncertain times, such as after college graduation into unemployment or starting on your own without any steady income yet established!

Cash can be helpful in times of crisis.

Inflation is a real risk, and cash can help you avoid the worst effects if it happens to you. If your salary doesn’t keep pace with inflation, then having some money aside could prove invaluable when paying for rent or food.

Similarly, if there’s an emergency that requires you to use all of your funds at once–say someone gets sick or injured–having access to some cash means that you won’t have to worry about whether or not they’ll be able to receive proper care because they don’t have health insurance (or any other type).

Furthermore, if there’s ever an opportunity where buying something valuable makes sense but taking out a loan seems too risky (e.g., purchasing real estate). Having some extra money on hand may allow us more freedom in our decision-making process without compromising our financial well-being too much in case things don’t work out as planned.

There you go!

Cash can be a valuable asset to your portfolio, but it’s not the only one. You don’t need to be an expert trader or have extensive knowledge of stocks and bonds to make money with cash investments. All you need is some patience, discipline, and maybe even a little luck!

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Weather
35°C
Bihar
broken clouds
35° _ 35°
31%
1 km/h
Fri
45 °C
Sat
46 °C

Latest on GotResolve

40 Best Sites to Watch Movies for Free
39 Best Sites to Watch Movies for Free (Legal & Safe Ranked)
Streaming
Crunchyroll Review & Analysis
Crunchyroll: Review & Analysis of the Anime Streaming Giant
Streaming
Telenet Webmail
Telenet Webmail: Everything You Need to Know
Email & Messaging
Microsoft Rewards guide
Microsoft Rewards: Earning Points and Redeeming Prizes
Internet
guest post guide
#1 Guide on How to Get Published Your Guest Post
SEO
Live-In Care
Personalized Live-In Care: Enhancing Life Quality at Home
Health & Fitness
Group e-Cards
How Group e-Cards Are Reinventing Farewell Celebrations
Business
celebration-7426790_1280 (1)
Top 5 Must-Attend Navratri Garba Nights in the USA
Fashion & Lifestyle
UGREEN Power Bank
Belangrijkste Kenmerken van de UGREEN Power Bank die je Moet Weten
News
MilesWeb Web Hosting Reviews
MilesWeb: Cheap and Secure Web Hosting in India

Our Top Categories

  • Automobiles10
  • Biography5
  • Branding1
  • Business14
  • Cameras & Photography2
  • Cloud & Hosting5
  • Content Marketing2
  • Destinations1
  • Education23
  • Electronics4
  • Email & Messaging7
  • Entertainment24
  • Fashion & Lifestyle61
  • Finance28
  • Food17
  • Gadgets7
  • General15
  • Health & Fitness37
  • Home Improvement26
  • How To15
  • International5
  • Internet7
  • Investment5
  • Marketing13
  • Mobile & Tablet2
  • News17
  • Real Estate21
  • SEO5
  • Social Media13
  • Software6
  • Streaming20
  • Technology17
  • Travel16
  • Vacation5

Trending on GotResolve

ibomma telugu movies
iBOMMA News, iBOMMA Telgu Movies Alternatives
Streaming
digital marketing post
Digital Marketing Tips For Your Small Business
News
wrapped gift box
Experience Gifts – A New Dimension of Giving
Fashion & Lifestyle
glove
How an exfoliating glove will improve a skins health and appearance
Fashion & Lifestyle
silhouette photo of man on cliff during sunset
5 Ways That You Can Improve the Quality of Your Life
Fashion & Lifestyle
Home’s Curb Appeal
Easy Ways To Boost Your Home’s Curb Appeal
Home Improvement
building-maintenance-3926053_1280
New to Home Ownership? Top Building Maintenance Tips from the Pros
Home Improvement
anime car mat
How Anime Car Mats Can Improve the Look of Aussie Vehicle
Automobiles
tutflix
TutFlix: The Best Educational Forum On The Internet
Education
streameast
Streameast live, Latest update, and Streameast Alternative
Streaming

Related Strories

The Advantages of Using a Software Tool for Qualitative Data Analysis

By Team GotResolve
2 years ago

How to Get free overdraft protection?

By Team GotResolve
2 years ago

Leverage Technology to Maximize Profit in Forex Trading

By Team GotResolve
2 years ago
Insurance Broker Business
Finance

Understand the Basics of the Insurance Broker Business

By Team GotResolve
2 years ago
Show More

Get Insider Tips and Tricks in Our Newsletter!

  • Stay up to date with the latest trends and advancements in technology with our exclusive news and insights
  • You can get a chance to become a contributor if you have passion and expertise in a niche
  • Additionally, You can publish your sponsered post if you want advertise on GotResolve
GotResolve Old Logo GotResolve Old Logo

With a diverse range of industries covered, including Real Estate, Health, Beauty, Fitness, Career, Tech, Business, Online Making Money, Digital Marketing, and more, GotResolve became the go-to destination for those looking for expert insights

Company

  • About Us
  • Affiliate Disclosure
  • Contact
  • Write For Us
  • Disclaimer
  • Privacy Policy

Quick Links

  • Entertainment
  • Fashion & Lifestyle
  • Health & Fitness
  • Home Improvement
  • Travel

Follow Socials

Copyright © 2020-2025 GotResolve. All Rights Reserved.

Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?