Today in class we discussed the safest, best returning place for cash as well as liquidity. One thing I found really interesting was the concept of liquidity risk: the inability to convert a hard asset to cash without losing of capital / income in the process. The article we read the other night provides an example of an illiquid asset- rare books. Another thing I found interesting about today's class was the idea of a multiplier account. Though I am familiar with DBS, this was my first time hearing about a multiplier account. After our discussion, I'm definitely going to ask my parents about setting up an account for myself.
I found that keeping track of all my expenditures is a lot more difficult than I anticipated. There are days when I forget completely, and have to use my memory to the best of my abilities the next day instead. So far, I've noticed that I'm spending a lot less than I expected. One possible reason for this is that I have been eating out less over the weekends due to my busy schedule and as a result, am paying for less meals and transportation.
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