Despite plenty of better options, many Singaporeans are still stuck with fixed deposits. Some of us are plagued with a “winning by not losing” mentality, where we think hoarding the money is safest. Nothing could be further from the truth. In fact, those who hoard rather than invest are the ones living on the edge.

What’s wrong with just cramming money in accounts?

The simple answer is inflation. Over time, the cost of goods will increase. To get a sense of this, you can try out the inflation calculator that the Monetary Authority of Singapore (MAS) has on their website; but here’s an example for you:

A three-room flat priced at $200,000 in 1990, would cost around $352,640 in 2015. This is a 76 percent increase over 25 years, at an interest rate of around 2.29 percent.

Now if you have had kept $200,000 in a Milo tin in ...