Not every Singaporean believes in the prowess of financial institutions. There are some people who prefer to hide their wealth in a personal safety deposit. If you are one of these people, take time to introspect.
What is the real reason why you keep bundles of cash at home? Do you foresee a need in the near future? Lacking immediate reasons why you need the money highlights that stashing your cash at home is not necessary. Do not get me wrong! It is alright to spare a decent amount of cash for emergency purposes. However, it is not advisable to store your entire savings at home.
I shall share my own experience to put things into perspective. I started to build my savings in my late teens. As a newcomer in the workplace, I was completely transparent with how I manage my money. Oh! How I wish that I was not. Unbeknownst to me, my boss was a member of a financial “support group”. Those type of groups exist in Singapore. Some of these groups even advocate different methods of expanding one’s income. It was natural for my boss to question my ways. He pointed out how keeping my savings at home will not allow my wealth to grow. At that point, I did not absorb what he meant. So, I did my resarch. I eventually understood the importance of compound interest. I opened my own savings account at a local bank.
The interest rates offered by banks may not seem a lot, but every bit counts! The slightest percentage you would earn in a standard savings account is much better than what the 0% interest that you will receive at home.
The second factor focuses on the “safety” aspect. The mere presence of tangible cash makes you vulnerable to uncontrolled circumstances such as fire, pest infestation, and theft. Despite the relatively low crime rates in the country, you cannot deny the possibility of getting robbed. The temptation can be irresistible for your teen who wants to party on a Friday night or your toddler who wants to create a beautiful artwork. This is why you must place your wealth in clever hiding spots (look through this list). Simply remember where you put it!
The third factor involves accidents. You might actually throw or leave your cash behind. It is easy to neglect where you hid your fund if you are really good at it. What is worse? Someone else may find it and get rid of it. In 2009, a woman in Tel Aviv (Israel) gave up her old mattress. The only problem was that she placed a million of her savings inside the old mattress.
The moral of this story is to consider safer alternatives than keeping your wealth at home. For instance, you can pay with your credit card when the rainy day comes.