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How Cash Loses Value
The U.S. dollar is no longer backed by gold or other commodities.
The more money the U.S. government prints, the less value each dollar holds.
So, saving cash actually means losing purchasing power or diminishing wealth.
It will make you poorer compared to your friends who invest wisely.
Gold holds its value and keeps up with inflation.
For the younger generation, investments are far more important than savings to become financially self-sufficient, he said.
The Importance of Building Emergency Savings
However, there are good reasons to keep cash on hand.
Experts recommend saving anywhere from three months to one years worth of living expenses in a high-yield savings account.
Having money available instantly in a savings account is essential, said Melanie Musson, personal finance expert withClearsurance.
You cant pay your utility bill or insurance deductible with gold.
As far as Bitcoin, he said, That serves a different purpose.
Its your risky pile, that one asset that can tank as fast as it can recover.
It can turn you into a millionaire overnight or make you poor.
You need assets like that, but no more than you need traditional ones like stocks.
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