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Here’s Why You Shouldn’t Save Your Money in a Mattress

We’ve all heard the stories of people lining their mattress with bills or stuffing their savings under the mattress for safekeeping. However, if you want a nest egg, this is a terrible idea.
7-3 Matress
Credit: Nattanan Kanchanaprat from Pixabay

Let’s look at why and discover some much safer options.

1. When cash is gone, it is gone

The evolution from using cash to going digital (bank cards, credit cards, bank accounts) adds a lot more security to your savings. Cash is untraceable so when it is gone, it is gone. If someone broke into your home and stole the cash from under your mattress, it is doubtful you’ll ever get it back. Fraudulent charges on your debit or credit card, however, can be reversed. In one instance, a well meaning daughter replaced her mother’s mattress with a new one. The surprise was not the new mattress. It was the loss of her mother’s life savings.

2. No interest

A good way to grow your savings is to take advantage of interest. That is when your money makes money simply for sitting in an account that accrues interest. It’s not going to do that in your mattress. Check out these high interest savings accounts that make your money work harder for you.

3. Loss of the Time Horizon

It may not seem like interest adds up but compound interest certainly does, especially if you have a long time horizon. In investment terms, the time horizon is the length of time you hold an investment. If the funds are in an account accruing compound interest, a long time horizon starts to grow your money rapidly after a set number of years. Taking advantage of a long time horizon means being able to invest less but get more. This is why if you start saving for retirement in your 20s using an account where your money can earn compound interest, you can put a lower amount away monthly and still reap a big reward. If you start saving for retirement at 50, you’ll need to budget a high sum into a higher-risk investment to get the same payoff.

4. So inconvenient!

We are very far from the days when people were paid in cash or went to the bank to cash out a paycheck. Today, money is deposited into your account and most people use a debit or credit card. To get cash for your mattress you literally need to go to the bank, make a withdrawal and pad the mattress. Then you still have to hope dubious friends and family don’t find your stash, hope the house doesn’t burn down, and really hope a sweet daughter doesn’t surprise you with a new mattress.

Talk to the Pros

To learn the best ways to save money, talk to an investment advisor. There are all kinds of accounts, funds, strategies, managers, self-managed funds and virtual services/apps to help you save more. Money in a mattress is the riskiest way to save, and not risky in a way that has any clear reward.

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