The theory states that the more cash that builds up in the treasury of an organization, the greater the pressure to piss it away. After all, it is not simple to hold on to the cash.
J Hugh Liedtke, former CEO of Pennzoil, believed that “companies should pay out cash so the managers wouldn’t drain all the money away.”
Many of the companies won’t use the cash for special dividends or stock repurchase. This bring the underlying cash around as negative points as the company is unable to use it wisely. There may be chances that the company is cooking the books so it is just a false number.
As the conglomerate grows, it becomes difficult to utilize the cash at the same pace and return. With time, the return on capital decreases. Many of the tech giants like Apple and Alphabet had around $100 billion cash reserves in 2019. They are earning at a greater speed then they are spending, which eventually helps in conserving the cash.
We should also increase our appetite of cash hoarding, especially observing the current pandemic situation. The equation is simple but not easy to follow. Earning >> Spending.
You need to be hardwired to save a small pie of funds. As we go ahead in digital life. There will be more hurdles as we see the growing trends of credit cards and decline in savings. Patience and disciplines plays a key role in boosting up the savings and declining the spending. You can build up minute habits to boost your saving. For instance keep aside the exact amount you spend for saving purposes. You may be spending 10K per month for non-essential items. At the same time you need to make sure you keep aside 10K per month for future. This simple habit over a long period of time will surely show up miracles.
Igniting Curiosity.. 
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