It’s not even as crazy as it sounds. In fact, it could very well become reality. We are talking about negative interest rates. This of course has an effect on the money you save at the bank. It’s quite easy to explain what will happen when negative interest rates actually become reality. The money or balance in your bank account will slowly but surely go down. You simply wil be charged because you have money in a savings account. Fortunately these so called negative interest rates do not currently exist but the rates that do exist are barely noticible. This puts savers in a dilemma. They don’t know what to do with their money and they don’t feel ‘safe’ anywhere. Be aware that saving money has two components to it. The amount of money in total and any potential interest earned on this amount.
Get more out of your savings
Having a emergeny fund is crucial. Every family is going to experience a couple rainy days early or later. It’s important that you prepare yourself. The problem is that when you leave your money in the bank it will slowly decline. This is because the little amount the bank pays you in interest is well below the inflation rate. This means that you are losing money, and who wants to lose money?
Investing is the way to go these days. It may not sound like it, but a dollar invested instead or a dollar saved makes a world of a difference in the long term. The average return on the S&P 500 over the last 15 years is way higher than the interest that your bank has to offer. The truth is, there are so many things you can invest in. One more risky than the other. If you want to invest we suggest you do research.
Harry Hedaya
Harry Hedaya is a man of many traits. From flying plains to starting multiple companies. If you want to learn more about Harry Hedaya or Harry Hedaya wife you can have look on the internet. There are many articles and blogs about Harry and the things he has done.
