Categories: Seniors' Club

5 Reasons Why Stashing Cash Around Your Home Is an Awful Idea

Photo by Andrey_Popov from Shutterstock

Reason no. 4: You’re not thinking of inflation

Another reason why stashing cash around your home is an awful idea is that you’re not considering inflation. It has the most unpleasant consequences for your cash. However, you can easily avoid that by putting your dollars in a bank account.

To see the bigger picture, here’s an example:

Suppose you hid $1,000 in a drawer 10 years ago. If we take into consideration the Bureau of Labor Statistics’ inflation calculator, the same amount of money would have the exact buying power as $1,190.52 now.

Maybe for you $190,52 it’s not a big chunk of money, and if that’s the case, just triple the $1,000 grant. Put your money in a savings account in order to minimize the dear effect inflation has on your cash.

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