Inflation is perhaps the word everyone must understand

To let all the readers understand more about inflation, here i write another post in case some feel boring to read the share investment stuff.

Try to change from another (than my previous post) point of view, inflation also means the value of your money decreasing. Which means, on tomorow, your money is going to be cheaper than today's value. It is difficult to understand how money can be cheaper, lets see this scenario. The money you are holding today just like a hi-tech stuff(handphone, cool laptop, mp3 player, PSP.......) Today, an iPhones costs you $199, years later it will only be selling at, say $99. You bought your laptop at 3500 bucks years earlier, but today the 1 selling at 1999 is actually better than yours. The RM 55-8GB pendrive is actually cheaper than the 128 MB pendrive when it was launched( around RM100). It is just the same to the money, just not that significant.

Thus, cash is the all-time-worst asset to buy (unless there is a deflationary economy depression, which is short-lasting) People with their networth consists mostly cash is getting poorer & poorer. So we have to found alternative, the first one is the fixed deposit, FD you bought from bank. I always like to tell my friend a case: " you earn 10 bucks today & the Starbucks tall cappuccino is selling at RM10. You have a fair financial sense, you keep your 10 bucks in FD. Years later you cash-out the FD at RM 15, you go to Starbucks, & the Tall Cappuccino is selling at RM15" In this case, FD is just an instrument for you to park your money in case you have no idea on other alternative. FD is just like refrigerator, it keep the value of your money so that whenever time in the future you cash-out your money, your still can buy 1 tall cappuccino.

Other alternative which is better than FD is like your EPF, gold, wine, and others. If you are not a investors in share market or real estate market, it is still not advisable for you to have cash as the majority part of your networth, try consider gold or conservative investment(like utility business i mentioned)

"Cash is just like a pendrive, it is getting cheaper & cheaper"