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Cash is a safe asset. You can use it immediately, and the price does not move greatly.
However, in the time when the price rises, even if the "facial" of the cash is not changed, the thing that can be bought can be reduced little by little.
The danger of the Inflation period is not to have cash. All of the assets are made in cash only, and they are deprecated in purchasing power.
First Con まず
Cash is required. Living expenses, emergency funds, and money used in the near future should be in cash.
The problem is to keep all the money you don’t use for a long time. If the price rises, the amount that can be bought at the same 10,000 yen will be reduced.
The Bank of Japan has 2% year-on-year increase in consumer price as a goal of price stability. If the price of the item increases by 2% every year, the purchasing power of the cash can be cut by little.
Cash Advantages
Cash has a clear strength.
| 強み | 内容 |
|---|---|
| Contact Us | Supports living expenses and sudden expenses |
| No price changes | Daily value does not fall like stock |
| Indirectly safe | Protect your life even when you fall |
The role of cash is important as the investor. If there is no cash, you may be able to sell investment products when the market is bad.
What happens with inflation
Inflation is the price of goods and services.
For example, if you bought it for ¥10,000 in the past, you will need ¥10,000 after several years. Thus, even if the bank account balance is the same, the substantial force is weakened.
| State | Impact on Cash |
|---|---|
| Stable price | Easy to keep cash purchase |
| Price rise | Reduce the amount of purchase at the same amount |
| No s or interest rates | More burden on households |
The scary thing here is not visible loss. It does not appear deficit on the account screen like the stock price drop. The amount that can be bought is reduced.
Cases where only cash is dangerous
Only cash will be dangerous.
| Types of Money | Location |
|---|---|
| Lifestyle | Cash, Savings |
| Money used within 1-3 years | Cash and safe deposits |
| More than 10 years | Consider investment trusts, ETFs, stocks, bonds, etc. |
No need to turn all into investment. It is dangerous. The important thing is to divide it in the time of spending money.
Measures for beginners
As a measure against inflation, it is not necessary for beginners to work on difficult products.
First of all, consider investing from a small amount on long-term funds that secure living defense funds and exceed it. It is more practical to learn from a wide variety of products such as global stocks andファンド funds.
| 対策 | Purpose |
|---|---|
| With Living Defense Funds | Not sold at crash |
| Start a small amount | Long-term preparation for inflation |
| Dispersion | One Asset |
| Watch regularly | る to changes in household and income |
Inflation measures are not to buy high-risk products. Balance cash, investment, insurance, and income.
Cash is required. However, it is difficult to protect assets only by cash in the inflation period.
The cost of living and emergency funds are protected by cash, and the money that is not used for a long time is considered to be used little by little. It is important to separate the role instead of denying cash.
Reference
- Investor.gov, Investing Basics
- Date: 2026-05-27