Are there any drawbacks to keeping all my savings in short-term investments?
Curious during short-term savings
Yes, there are drawbacks to keeping all your savings in shortterm investments. Shortterm investments generally provide lower returns than longterm investments, so you may not be maximizing your earning potential. Additionally, inflation can erode the purchasing power of your savings over time. If your shortterm savings are not keeping up with inflation, you may not be able to afford the same level of goods and services in the future that you can afford today.
Moreover, by focusing solely on shortterm savings, you may miss out on the opportunity to invest in assets that could grow in value over the long term. It is important to have a balance between shortterm and longterm savings to meet your various financial goals.