This is a well known phrase in the investment world, "cash is king". Well if it is the king what will happen to other investments like gold, Land and Stock markets ? Well they might be ministers and not king :)
My notion of this phrase it that, cash is the most liquid form of asset and at your disposal anytime, so people admire you, respect you when they see rupees in your hands. Their pupil enlarges :)
There must be more to it, hmmmm.....as my American friend will say dollar is better than rupees. Cash is king term relates locally and not globally. In India if you have rupees, its cash to you. If you got dollars in India, its not cash its another form of asset.
When wealth managers talk about asset allocation, they have a pie chart and say certain percentage is for retirement, stocks, blah blah blah. They all talk about the future ignoring the present. Lets say you got 30 lac rupees in cash, with zero debt, how nice will it be for my ego?! I will be more free minded and plan for more things to come. I will be at ease in life and I don't need stress management, well when the money is there stress flies away :)
Some people misunderstand having Rs 50,000 in their bank account is cash, I would call it petty cash. When you say you have bought gold, you don't say I bought 1 gram or if you bought land, you don't say you bought 1 cent .
Well we would be kings if we understood Cash is king.
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