Why having money in the bank is bad during recession but spending it is good?

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I see loads of investors or financial advisors saying that “buy assets. Money in the bank will mean nothing”. I don’t understand how spending helps even if it is on assets. How can one take loan and buy a house? If one has savings to see them through in case they get out of budget isn’t that better? Or is poor-person mentality?

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Anonymous 0 Comments

They are talking about money you won’t need.
Emergency funds and expenses money are not a part of that.

Usually people know about the “buy low, sell high” mantra but when it comes to doing it, some people hesitate with the mentality of “I think it’s too risky to invest the money, the economy is not doing good right now” so they end up on the end of “buy high, sell higher” which isn’t bad but the former is way more efficient.

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