Save Money – Build A “Stash Of Cash”


In this article I will explain why you should save money.

If I could suggest one thing to every person on earth in relation to financial advice it would be


Saving money is the most important thing you can do in your finances.

I don’t care what your financial situation looks like,

  • You could have a family, kids, mortgage and credit card debt
  • You could be a student with a student loan
  • You could be debt free
  • You could be renting
  • You could be living pay by pay
  • You could be self employed


And a million other different situations, but saving money will benefit you in all of these situations.

When you have cash savings, you will enjoy HUGE benefits. Such as,


  • Feeling of safety, security, comfort, less stress, confidence, strength, positivity, happiness, less pressure
  • Less debt burden either by paying down debt or paying it off
  • Buffer in case you lose your income
  • Emergency funds
  • The option to leave your job and not worry about income
  • The option to leave your job and start a business
  • Seed capital for a business
  • Pay cash for travel, car, furniture, clothes etc.
  • The option to take a mini retirement
  • The option to invest it
  • If you saved a lot of cash, retirement


As you can see having savings is so important. Often the financial problems people have are a result of not having enough savings causing them to live pay by pay, always one problem away from financial devastation.

Now that you know some of the benefits of saving cash, I want to explain the two types of cash savings I suggest.




If your net worth is zero and you are living pay by pay, you can’t afford anything.

Let me repeat that, YOU CANT AFFORD ANYTHING!

You can’t afford a car loan, travel, kids, marriage, college, anything! So before you think about doing any of these things you need to save cash.

You need to save cash not to pay for these things, but because your situation is dangerous as it is.

You need to save the mandatory amount of cash.

How much is the mandatory amount of cash? It depends on your situation but you want enough where if you lost your income you can survive for at least a month at minimum but the longer the better.




  • To experience positive emotions like safety, security, less stress, less pressure, more comfort etc.
  • In case you lost your income
  • In case of emergency
  • In case you absolutely can’t stand your job anymore and have to leave
  • To replace income protection insurance
  • To be charged less interest if mandatory cash stash is held in loan account


As you can see the mandatory cash stash is so important that you must always have it. I can confidently say that this cash stash would help almost everyone on earth if they built it. But many don’t.

Everyone would experience those more positive emotions, which means they would be happier and happiness is the most important thing in life.

Now once you have your mandatory cash stash you can make other choices

Now you can start planning your travels, car purchase, home purchase, starting a family, investing etc.

Until then you are treading a fine line.




Once you save beyond your 1st stash of cash your options open up. You could do many things with the extra cash you save such as.

  • Pay off debt
  • Go on a holiday
  • Buy a car
  • Buy furniture
  • Buy clothes
  • Down payment on a house
  • Start a business
  • Take a mini retirement
  • Invest it
  • Retire

Because you have already saved the mandatory cash stash you are free to save for what you want.

Bear in mind though that the more you spend instead of paying off debt, saving and eventually investing the less your net worth will be and the longer it will take to retire. The same goes if you borrow for things instead of buying them outright.

But we can’t live life way ahead in the future all our lives because the future may never come so go on that holiday you always wanted or buy that car if you can afford it and it makes you HAPPY, the key word is HAPPINESS. Structure your finances around increasing your long term consistent happiness.

Because you have saved the mandatory cash stash you are still going to be in a healthy situation.




If you have no debts, I suggest holding cash savings in a savings account so at least it maintains its value with inflation.

If you have debt like a mortgage I suggest holding your cash savings in that loan, provided that you can access it at will, because you savings will be working against that interest. You mandatory cash savings could be giving you a 5% return or whatever your loan is per year because you have the funds in there. Paying off debt is investing in reverse.



You need to minimize expenses and maximize income until you can. Read my article about saving money as well as all the other money related articles.

I hope you understand and implement this very simple but very important rule, the golden rule of saving cash.

It’s so simple but most people don’t live like this and that’s why most people struggle their whole lives, living pay by pay, scared of losing their job, never able to take time off work and feeling unhappy.


I hope you liked my article and I hope I helped you!

(DISCLAIMER: The financial information in this article is general only. I am not qualified to give financial advice. before making any financial decision you should seek the advice of a qualified professional)

1 Trackback / Pingback


Leave a Reply

Your email address will not be published.