I make it a point to immediately ‘freeze’ any extra liquid cash that I have by quickly adding to my dividend-growth portfolio.
The reason is simple – any liquid cash lying around (or in a bank account) runs the risk of being spilled on the ground.
Have you ever noticed that when you have a stack of cash in your wallet, you tend to feel an itch to spend it? Suddenly you’re in the mood to ‘get something nice’ for yourself.
Well, good for you if you’ve never felt that way. But statistics would show you that a tonne of people live on credit cards.
When you have most of your cash in stocks, real estate and other investments, it would require a more active effort for you to liquidate them to fund a purchase.