by Leo Enoch

Created on: September 29, 2008

Is it really better to save cash during the financial turbulence? I choose a rather different view. In financial turbulence, normally interest rates are high, banks are facing liquidity problems, mortgages are facing foreclosure, stock market plunges to the floor, property market losses its value by half or more, there are more non performing loans than ever, if you think of saving cash during this time, I believe the move is already late.

It is pretty risky to start saving your cash in banks during this time. Especially when your saving is not fully covered when the banks are facing liquidation. We saw not only in United States, but all over the world, big national or state banks kneel down to bankruptcy at the pressure of the financial meltdown.

You will never know which financial institution will be liquidated during the financial turmoil, I have seen giants financial institution gone overnight leaving thousands stranded with their hard earned money disappeared just in a few days. Even giants like AIG, Lehman Brothers are not invincible to the effect of the financial crisis.

The reason why people are not advancing in their financial conditions is that they are saving cash at the wrong time. They should be saving cash when properties are at sky high prices instead of buying those properties by taking second and third mortgages.

Now it is a good time in a financial trouble to use your cash saved to purchase deeply discounted properties or blue chip stocks, or investing in precious metals. It is known that precious metals provide a safer way to invest your cash during financial turbulence.

Of course during this time, you have to use your cash wisely, try not to spend on luxurious items or things that you do not need. It is not the time to satisfy your want but it is a time to take the opportunity to use your cash wisely to advance your financial standing for years to come.

Like a saying during this time, if you have been saving cash before, you will be the king, whoever holds cash during this time makes the call when buying great assets at great prices. If you follow the trend that you will only achieve the same results like most people but if you see closely. You will notice that some people are doing otherwise, they are properly spending their cash during this time to acquired more and more great assets.

Well to save or not, it is your own cash, however if you use it wisely at the right time, it can make a lot of difference to your life and your wealth.

Learn more about this author, Leo Enoch.
Click here to send this author comments or questions.