Where to Put Your Extra Cash


If you have extra cash today, where would you put it?

One Thursday, I was at a big towering building in Ortigas. After walking under the scorching heat of the sun for fifteen minutes, I found myself inside the elevator going up the 24th floor to attend a seminar. A few hours later, I stepped into the elevator going down and later found myself at the ground floor entering the doors where a shouting sign welcomed me: “Grand Sale!!! Up to 70% OFF!”

Oh yes! There were beautiful branded shoes, shirts, and caps being sold at super bargain prices. Oh yes, it’s tempting to buy them.

I had two options: First, I could use my extra cash to purchase something I would pick. Second, I could use my credit card to pay for three more things I would pick.

Wait a minute. Two options? Not really! I had a third option.

My third option was to walk out of that room without any cash out or added obligation on my credit card.

I am thankful that I chose the third option because I don’t need to buy more shoes or shirts or cap that very moment. I still have good pairs that I use.

So there I was, excusing and squeezing myself out in the crowded shop and went ahead to the exit door.

In life, especially in our financial life, we often times think that we only have two options and that we had to pick option one or two. What we miss to consider was there were actually more than two options. There is option three or four or five.

When we come across “bargain” opportunities, and here comes that thinking that we need to grab the opportunity to buy that item regularly sold at P1000 now sold at P300. We think we are saving P700 when we purchase it. But think again. The truth is you walked out the door with P300 less cash in your wallet. The question is: do you really need that item? If yes, good for you. If not, then it’s time to reconsider.

So if you have extra cash today, where would you put it – will you go and grab that pair of shoes on 70% sale which you don’t really need?

Some maybe asking: Where then will I put my extra cash? Oh well, use it to fund your investment.

And you also have more than two options because investment can be interpreted in different ways. Perhaps, you need to invest more in learning. Enrol in a course or buy that book or attend that seminar. Perhaps, you need to start saving and build your emergency fund. Perhaps, you need to start investing in the stock market. The choice is yours!

Just remember these: First, when faced with two options, look for other options; there might be other options which are way much better. Second, when buying something, don’t buy just because it’s on sale, buy because you need it; and when it’s not, then consider saving or investing it.

If you are interested to know more about investing in the stock market, visit www.chrispoweracademy.com/stockinvestingguide.

(Chris Dao-anis/CPA, as an author and speaker, helps aspiring and young professionals become better communicators and leaders. For seminars and resources, visit www.chrispoweracademy.com or email him at chrisdaoanis@ymail.com.)