The Common Practice of Hoarding Cash and Its Pitfalls
In many Mexican households—and across Latin America in general—a familiar sight is cash stashed away in a “safe” place: a safe, a hidden compartment, or even under the mattress. While this habit is understandable from a cultural or emotional perspective, it presents a significant issue: idle money loses its value over time.
Yes, the cash tucked away at home, though it feels secure, is constantly threatened by an invisible yet persistent enemy: inflation. Keeping cash for extended periods is like leaving fruit in the sun; it eventually loses freshness, utility, and value. The problem lies in the misconception that keeping money still is safer than making decisions with it.
The Rise of Digital Money and Investment Opportunities
Fortunately, a quiet yet powerful transformation is underway: the digitalization of money. No longer just about paying with your phone or transferring through an app, today you can also invest with just a few clicks, all from the comfort of your home without tedious procedures or advanced financial knowledge.
This shift isn’t merely technological; it’s cultural. Migrating money from physical cash to your mobile device involves a leap of faith, education, and forward-thinking vision. However, it need not be complicated.
Solutions tailored specifically for those taking this initial step exist. For instance, BBVA Invest is a new feature within the bank’s app that assesses your investment profile by answering seven brief questions, then delivers a customized proposal based on your risk tolerance—ranging from conservative to more dynamic profiles—all through your phone, without the need to visit branches.
This presents a unique opportunity for individuals eager to start investing but unsure of how. It’s not about becoming an expert in financial markets; it’s about recognizing that there are realistic and accessible alternatives to hoarding cash.
Benefits of Digital Investment Platforms
These platforms offer transparency and control. Users can view their returns, adjust their portfolios, make additional contributions, or even sell a portion when needed. All of this is done flexibly and securely.
Transitioning from cash to the digital environment isn’t just about convenience; it’s a way to take charge of your finances, safeguard your money, and grow it intelligently.
Migrating your capital from the cookie jar to your cellphone signifies financial evolution.
*VP Investment Advisor Manager at BBVA Asset Management
Key Questions and Answers
- What is the common practice discussed in this article? The common practice is keeping cash at home, believing it’s safer than investing.
- Why is keeping cash idle problematic? Idle cash loses value due to inflation over time.
- What is the significant change happening in personal finance? The digitalization of money, allowing for easy and accessible investing.
- What are the benefits of digital investment platforms? These platforms offer transparency, control, flexibility, and security.
- How does migrating money to your phone help your finances? It allows you to take control of your finances, protect your money, and grow it intelligently.
