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Keeping cash on hand has proven to be financially detrimental due to inflation, as the value of money decreases over time. The speaker indicates that the lack of prioritization for high-yield savings options compounds this issue, resulting in lost money. By not taking advantage of better interest rates or investment opportunities, the speaker acknowledges a missed opportunity to grow their savings. This highlights the importance of being proactive in seeking high-yield options to counteract inflation's negative effects on cash reserves.