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Bruce Banner

Cash Is King

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It just struck me that there is another angle to cash is king, interest rates may be low but cash in the bank still works for you.

For example, we were out shopping yesterday and my wife noticed her normal brand of dishwasher pellets on sale at 70% off, so she bought as much as we could carry. This is pretty much normal procedure for us, stock up when the special offers are on.

If you use your cash to buy stock when prices are low it goes a long way to make up for low interest rates. We probably live for half the price of someone who lives hand to mouth using credit.

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Airlines did this when oil was $140 odd a barrel. They bought low, and when oil was rising, they were laughing (and probably charging a fuel surcharge to customers).

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It just struck me that there is another angle to cash is king, interest rates may be low but cash in the bank still works for you.

For example, we were out shopping yesterday and my wife noticed her normal brand of dishwasher pellets on sale at 70% off, so she bought as much as we could carry. This is pretty much normal procedure for us, stock up when the special offers are on.

If you use your cash to buy stock when prices are low it goes a long way to make up for low interest rates. We probably live for half the price of someone who lives hand to mouth using credit.

Excellent forward planning. Living well below your means.

Any spare cash goes into FTSE 100 with dividend return for me. Currently averaging 5% against bank deposit of 0.1%.

So.. yes....agree you can still get a return on cash

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This is the angle that I should have been taking with my "do you spend money every day" thread: do you buy in bulk far ahead?

Last time I checked I had about three years' worth of razors (can't help myself, always buy a pack when Lidl have their XXL offer on) and shaving soap (Wilkos, don't go very often and not all of their stores have it, so last time I found some I bought all that they had).

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This is the angle that I should have been taking with my "do you spend money every day" thread: do you buy in bulk far ahead?

Last time I checked I had about three years' worth of razors (can't help myself, always buy a pack when Lidl have their XXL offer on) and shaving soap (Wilkos, don't go very often and not all of their stores have it, so last time I found some I bought all that they had).

I used to hold massive stocks of component parts when I was in business, all bought at top quantity breaks and sometimes bankrupt stock. The icing on the cake was that I could write it down each year.

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Last time I checked I had about three years' worth of razors

:D :D :D :D

By accident! I either can't resist the offer or forget how many I have, bring it back and go "Oh".

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Agreed. Found mince on its sell by date for £1 / kilo. Bought it all (4 kilos) and a sack of spuds etc

A few hours later and I have a freezer rammed full of chilli, shepherds pies, lasagne and burgers costing about 30p per meal.

Only possible because I have a large 2nd freezer.

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This is the angle that I should have been taking with my "do you spend money every day" thread: do you buy in bulk far ahead?

Last time I checked I had about three years' worth of razors (can't help myself, always buy a pack when Lidl have their XXL offer on) and shaving soap (Wilkos, don't go very often and not all of their stores have it, so last time I found some I bought all that they had).

But maybe you'll decide to grow a beard in a few month's time - then you'd look stupid.

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Jolly good, another HPC hoarding thread!

I inherited my tendency from my grandfather. When he snuffed it, we found an outbuilding rammed to the gunwhales with supplies: tinned food, soap, candles, etc, etc. Sadly, most was long, long time expired - but I think I may actually have a few of the candles left! Moral of the story: don't loose your marbles and forget where your stash is.

Re: cash - yes, cash is king when it comes to spending capital. But it's crap for income. My strategy is to hold shares for income, keep between one and two years of costs in cash (or cash-like) funds, and finally, a float of about three months costs for day-to-day spending. This gives me the flexibility to take advantage of bargain purchases and add to my stock room.

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It just struck me that there is another angle to cash is king, interest rates may be low but cash in the bank still works for you.

For example, we were out shopping yesterday and my wife noticed her normal brand of dishwasher pellets on sale at 70% off, so she bought as much as we could carry. This is pretty much normal procedure for us, stock up when the special offers are on.

If you use your cash to buy stock when prices are low it goes a long way to make up for low interest rates. We probably live for half the price of someone who lives hand to mouth using credit.

Stockpiling special offers and reductions is the easiest way to make your money work in a low interest rate environment. My Mum has the state pension but modest cash savings which she uses ruthlessly in this way. True it does not generate income but then she simply does not want most of the useless crap the modern world has to offer. She is by far and away the best cash manager I know.

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No! I'm afraid this has degenerated into one of HPC's favourite fetishes. Shaving tat. :huh:

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<p>

Two things that don't store well for quite as long as you would hope

  • Soap: it dries out
  • Razors: they go very very slightly rusty and lose their edge

Oh dear :(

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<p>

Two things that don't store well for quite as long as you would hope

  • Soap: it dries out
  • Razors: they go very very slightly rusty and lose their edge

Surely not the double edged blades. I buy them in bulk and they're individually wrapped

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Two things that don't store well for quite as long as you would hope

  • Soap: it dries out
  • Razors: they go very very slightly rusty and lose their edge

Not sure about soap? I have a box of various sealed soaps from my various hotel stays around the world on business, and we have not had to buy a new soap for the bathroom in five years - no drop off in quality visible?

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Not sure about soap? I have a box of various sealed soaps from my various hotel stays around the world on business, and we have not had to buy a new soap for the bathroom in five years - no drop off in quality visible?

I'll bet you never run out of ash trays, and pens either.

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<p>

Two things that don't store well for quite as long as you would hope

  • Soap: it dries out
  • Razors: they go very very slightly rusty and lose their edge

I've got 11 years worth of razor blades in my bathroom cupboard. They're platinum coated and in individually sealed packs of 10. I'll update the thread in 11 years and let you know how I get on

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Agreed. Found mince on its sell by date for £1 / kilo. Bought it all (4 kilos) and a sack of spuds etc

A few hours later and I have a freezer rammed full of chilli, shepherds pies, lasagne and burgers costing about 30p per meal.

Only possible because I have a large 2nd freezer.

Back in About 2007 in Tescos I bought 40 1kg packs of Powters (Newmarket Quality Butcher) best quality sausages for 50p a pack from the reduced items shelf. They went in the Freezer and lasted for about two years

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Jolly good, another HPC hoarding thread!

I inherited my tendency from my grandfather. When he snuffed it, we found an outbuilding rammed to the gunwhales with supplies: tinned food, soap, candles, etc, etc. Sadly, most was long, long time expired - but I think I may actually have a few of the candles left! Moral of the story: don't loose your marbles and forget where your stash is.

Re: cash - yes, cash is king when it comes to spending capital. But it's crap for income. My strategy is to hold shares for income, keep between one and two years of costs in cash (or cash-like) funds, and finally, a float of about three months costs for day-to-day spending. This gives me the flexibility to take advantage of bargain purchases and add to my stock room.

Tins don't expire! Unless the seal is broken the food remains safe to eat forever.

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