How could you use the liquidity of cash to better govern your future? What are the advantages and disadvantages of investing that liquidity in say, stocks or bonds, keeping in mind the factor of Time Value of Money.

The most important thing to keep in mind is this: What could you have gained from that extra cash on your hands? If you are someone who spends most of their money on expensive foods, extra cash on your hands would be gone in the blink of an eye. This is because food is a necessity for humans and we must satisfy that first level in the Maslow’s Hierarchy of Needs before we can advance into the Safety Needs, eventually reaching Self Actualization. This affects consumers’ buying decisions, as one who is chronically ill will spend most of their income on medication and hospital bills and maybe forgo that plane ticket to the Caribbeans for the summer holidays.

This is not to say that you shouldn’t invest in a healthy and/or lavish lifestyle, and it is certainly not to encourage a stingy lifestyle either. Spend money where money need be spent and use the rest of your income to better your future.