Mistake 1 of 9
Leaving everything in cash under inflation
The mistake
When there is inflation, money left sitting still slowly loses what it can buy. It feels safe because the number in the account never falls — but the basket of goods that number can buy keeps shrinking.
The fix
You do not need to take a big risk to fix this. Moving idle savings into a government bond or a liquidity fund that at least tracks interest rates closes most of the gap, with the same or nearly the same safety as cash.
A concrete example
A sum that buys a full cart of groceries today buys visibly less of that same cart a year later once meaningful inflation compounds — while a government-bond position earning a rate closer to that inflation rate keeps pace far better, for a similar level of safety.
Frequently asked questions
Isn't cash the "safe" choice?
Cash is safe from market swings, not from inflation. In high-inflation Latin American economies, holding only cash is itself a risk — just a quiet, slow-moving one instead of a sudden one.
How much cash should I actually hold?
Enough for your emergency fund (3–6 months of essentials) and near-term spending — beyond that, idle cash is usually better placed in a government bond or time deposit.