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The concept of mad money could easily be a very good way to save. It works this way; you set some money aside for when you need to make an impulse purchase or for emergencies. The concept comes from money that a lady often carries when she goes for a date, which she might need to use just in case the date doesn't go as planned, and she needs to pay some bills or her transport or something like that. The idea is that if you have some money stored away for these situations, then you won't have to spend your savings on emergencies. The thing about emergencies, is that they will often come up, and it is good to actually be well prepared for such moments. It's these moments that usually dig deep into your pockets if you hadn't planned for them.
Mad money means focus on investment and speculation, particularly in publicly traded stocks.
which some investors have used to make fairly high returns in a relatively short time frame.
n other words, these rises were not attributed to any new news that companies had released and, most importantly, they were not sustained for very long. In fact, the study demonstrated that these increases faded away within some period.