Cash Will Not Make You Rich, But It May Save You From Bad Decisions, Says CA

As the new year pushes Indians to revisit financial resolutions, a growing conversation is challenging the obsession with squeezing returns from every rupee. A viral LinkedIn post by CA Abhishek Walia, founder of Zactor Money, has added fresh momentum to this debate by stating that Cash is not an asset and will not make anyone wealthy, but it can buy something far more important, time and clarity. 

His remark, reported by The Economic Times, has resonated with thousands of professionals navigating career, health and financial uncertainty.

Walia admits he once believed idle cash was inefficient because it neither compounds nor beats inflation. But years of watching real people make real decisions changed his view. He observed that those with cash buffers could leave toxic jobs, survive income breaks and handle emergencies without panic. Those without it were often forced into expensive or irreversible financial choices.

This reality is visible in India’s lending behaviour. According to LoansJagat, personal loans in India today carry interest rates ranging from 10% to 36% per annum, and most are disbursed within 24 to 48 hours, making borrowing both instant and dangerously easy in moments of stress.

Why Cash Is About Control, Not Returns

Walia argues that Cash is not an asset in the traditional sense. It does not generate returns like equities, nor does it participate in the power of compounding, which, as highlighted in another Economic Times article, can grow long-term investments at roughly 12 to 14% annually when done patiently.

However, returns stop mattering when life demands fast decisions. In such moments, liquidity decides whether a person negotiates or surrenders.

How Different Money Choices Work In Real Life

The contrast explains why Walia believes financial planning is not just about optimisation, but about control.

How Easy Credit Has Changed Indian Behaviour

India’s household finance has changed sharply over the past decade. RBI, in multiple Financial Stability Reports published on its official website, has warned about rising household leverage and the growing role of unsecured personal loans in consumption spending. While these reports are available under the “Publications” section on rbi.org.in, the behaviour on the ground is already visible.

LoansJagat’s eligibility data shows that most lenders require a minimum monthly income of ₹25,000 in metro cities and ₹20,000 in non-metros to approve personal loans. The message is clear. Credit is accessible, fast and increasingly normalised.

This is precisely why Walia insists that Cash is not an asset, but it is a form of insurance. It protects people from selling investments in a market crash, from borrowing at punishing rates and from staying trapped in situations they should leave.

What Other Experts Are Saying

Other finance professionals echo similar views. In another Economic Times piece, CA Nitin Kaushik described how boring financial habits, including keeping emergency funds, are often more powerful than aggressive investing strategies.

Platforms like Moneycontrol and Business Standard have also repeatedly stressed that emergency funds are the foundation of financial planning, not an afterthought.

Conclusion 

Walia’s argument is not against investing. It is against helplessness. Markets reward patience, but life often demands speed. Cash provides that speed without forcing regret.

It may not build wealth, but it protects people from destroying it. And in real life, that protection is often worth more than returns.