Why I stay 100% cash-centric and don't give investment advice. Discover why clearing debt beats stock market risk and how standard savings buy peace of mind.
Written 1st October 2026
When I was younger, about 30 years ago, my Mum owned some company shares. The price started tumbling, and she was absolutely freaking out - losing sleep and worrying about her financial future. Around the same time, I had some shares in the company I worked for through a workplace share-save scheme. But seeing her fraught with anxiety about the stock market completely put me off traditional investing for decades.
The workplace share-save schemes were the only exception because they were practically bulletproof. They were 3 or 5 year plans where you could save between £50 and £250 a month out of your salary. Even if the market value dropped below our buy price at the end of the plan term, I could just take my saved cash back. It even added a small bonus, making it just as safe as putting money in the bank. I couldn't lose. Whenever those plans matured, I diligently moved the shares straight into an ISA to shield them from the taxman.
Beyond that? I chose to ignore the stock market entirely.
I had heard of index trackers, but I didn't pay much attention to them. My singular focus was to clear my mortgage. Investing always carries a risk, and even though tracker funds are well-diversified, I just wanted the absolute certainty of wiping out my debt.
In hindsight, because the global markets have performed incredibly well since the 2008 crash, I know I missed out on a significant amount of compounding growth.
But do you know what? I am completely OK with my decision to remain cash-centric.
By staying in cash, I bought myself total peace of mind. I never had to lose a single night's sleep over:
Geopolitical invasions or wars
Natural disasters or extreme weather storms
Changes in UK governments or US presidents
Global pandemics, bond market crashes, or economic shocks
If I could go back in time with a crystal ball, would I act differently? Yes, probably. But you can only make decisions based on your financial goals at the time.
This past year, I have been planning my own retirement income, trying to mathematically ascertain if I could afford to step away from work permanently. I spent months - and I mean months - painstakingly researching every single aspect of UK tax law, income frameworks, and investments.
Today, my setup looks a bit different. Now that I am completely clued up on the data, I do have a portion of my savings invested.
I haven't thrown everything into the market because I firmly believe in spreading the risk. Instead, I have invested a comfortable percentage - cash that I know with absolute certainty I will not need to touch for a period of years, even if the stock market goes through a terrible downturn.
Being clued up has also allowed me to help the next generation. I’ve encouraged my son, who is just 22, to start making small, regular investments into global index tracker funds so he can maximise the unstoppable power of decades of compounding. However, because he is currently saving for his first house deposit and has a short timeline of less than 5 years, he is wisely keeping the vast majority of his core savings safely in cash.
Countless financial influencers, websites, and apps scream about the vast potential gains to be had by investing compared to the slow, static interest rates of standard UK bank accounts.
But my philosophy remains unwavering: Until you have permanently ditched your consumer debt, why gamble with your savings?
Paying down a high-interest credit card, overdraft, or car loan gives you a guaranteed mathematical return equivalent to the interest rate you are being charged. You cannot beat a guaranteed win.
Once your budget is completely in the green and your debts are dead, then by all means - go for it. Spread your risk, look for low-cost global trackers with minimal fees, and start building wealth for Future You.
So I am not going to write about investments on this website. If you want to dive deep into that world, go straight to the Monevator website. It is a fantastic, zero-jargon, beautifully written, funny, zero-ads, comprehensive resource with an incredibly helpful community in the comments section.
I built Watch the Pennies to prove one simple, undeniable reality: You can live completely debt-free, clear your mortgage early, and buy your freedom using nothing but standard cash savings and iron-clad discipline.
Ready to take control of your numbers? Here is your next step:
Calculate your gap: Use the Daily Allowance Calculator to map out your true income and baseline household expenses.
Audit your habits: Use the Non-Essential Spending Calculator and the Life Cost Tool to see the shocking reality of what your casual habits cost you in actual hours at work and pure annual money spent on nothing.
Get inspired: Dive straight into the Lady Frugal Journal to read more real-world stories and my blunt thoughts on debt-busting and frugal living.
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