Savings during inflation

[odunybiz]

Saving ones money is good but could be a disadvantage during inflation. During inflation, price of goods might have increased rending your saved money valueless. In 2020, a friend bought his middle generator at #46,000. I had the same amount but decided to save mine in bank. Last week, I decided to buy the same generator, just to check a store online to see price was now  around #85,000.



See the difference in price within 2 year. Bank can never put such difference as interest on the saved money.

CONCLUSION
During inflation,
👉👉always purchase all you need on time without delay to avoid rapid increase of such commodity.

👉👉Unnecessary saving should be avoided. Savings should only be made from excess income which one doesn't need at that moment.

Lastly, investing is highly preferable to savings.

[1714703254]

1714703254

[Charles-Tim]

A time like this, it is good to go for asset like bitcoin as investment, going for bitcoin now would also be an hedge against inflation over years, just as it was in the past.

Bitcoin can be a speculative asset, but investing when the price is significantly low is a profitable investment strategy and also would be a hedge against inflation, that is what I mean.

Fiat do depreciate, especially in underdeveloped and developing nations, even US and countries in Europe which have good economy were unable to avoid over 7.5% inflation this year.

Not wise at all to save fiat in bank, going for investment is one of the reasons rich people is becoming richer.

[Duzter]

Every country is experiencing the inflation at its peak. A true example is pictured in the opening post. The right approach is to invest on cryptocurrencies which assure of profit. Even with cryptocurrency one need to do things at the right time without making any delay.

Once savings served as a base for further investment needs. Now things have changed and it is completely upside down. In my country banks are at its worst and few have closed the service. So, banks are no more a place for our hard earned money.

[batang_bitcoin]

It's not worth it to save your money in the bank if the inflation rate is higher than the percentage it gives to the interest rates. It's better to spread it to investments that has a higher percentage than the inflation rate because it will make you deal with the high prices of commodities through it.
I rarely save to the my bank accounts these days but I still try to put as much as I can so that, I treat it as an emergency fund but at most times, I convert it to bitcoin.

[Yatsan]

In savings, it would be really a disadvantage. They say "the value of money does not change", which is false. The price of everything moves, and the only stagnant thing is fiat. Like this scenario:

You put 10,000 usd in a piggybank, then for some reason you forgot that you did such. After 3 years you remembered. LOL
The things your 10k can buy before, is less worthy than the things that you can buy at the present because the market value of  devices, foods, and everything being sold, continuously increases due to inflation.

This is also why some people prefer investing their money than to just save it because it would be wiser.

Unless you chose to convert your savings into assets.

[cabron]

Generators need gas. You might be saving more with  Solar Panel or Wind Turbine which I think have worked in Africa.

The only investment that is likely to go up or safe from inflation is the Bonds and Bitcoin. Saving now will just hurt you instead spending the money you have is what you'd prefer to do before supplies run out because its not just inflation is the problem but the supply chains.

[edgycorner]

Couldn't agree more. Investing in assets such as real estate or stocks is always a better option than saving money in the bank during inflation. This is because the value of assets will increase over time, while the value of money saved in the bank will decrease.

If someone is living paycheck to paycheck, they should not be saving money because it will only put them at a disadvantage.
One advantage of saving money is that it can be used as a buffer during tough economic times. Having money saved up can help you weather a temporary loss of income or unexpected expenses.
Otherwise, it is better to invest in something that will maintain its value or increase in value over time.

[Eden Loomis]

Savings is secure but it cannot generate much interests. Therefore, I accept risks to invest my savings because I don't want my money lose its value too fast in the future

[samcrypto]

Savings is not advisable for those who have extra money, because this can’t give you enough profit so it’s really advisable to put too much money on savings account. As suggested by many, you can save the amount of your expenses up to 6 months which this can also save as your emergency funds, beyond that amount better to put it on a market where you can at least earn 10% yearly, which I think is already enough to beat inflation. Stocks and crypto market are both risky, but the reward is great.

[adaseb]

Yes inflation is horrible on the savings account. Generally you should invest it however if you invest at the wrong time like at peak 2021 then you are no better off.

From 2 years ago I found most items are at least 20-30% more expensive. Some more than others. So if you had some savings then 20-30% of the value is gone pretty much.

[Oasisman]

During inflation,
👉👉always purchase all you need on time without delay to avoid rapid increase of such commodity.

👉👉Unnecessary saving should be avoided. Savings should only be made from excess income which one doesn't need at that moment.

Lastly, investing is highly preferable to savings.

Well, what is needed is always going to be the top priority to use your money from. You also have to be aware of unnecessary spending, espcially with the stuff you think you needed, but eventually you'll realize it's not just because you are rushing to get these things to avoid inflation.
Savings and investing should be two separate thing on must do. I don't see any problem with savings in the banks, of course you don't want to expect it would increase in value over time. Savings are meant for emergency purposes. It should be secured and risk free and banks can do that for you. While on the other hand, Savings just don't get you profit thus you need to invest to let the money do the work for you and multiply itself.

 

[Uang_kartal]

actually only the segmentation is different.
if you mean to buy goods that sustain a lifestyle, I agree with you. Be it electronics, goods or services make conversions even more irrational.
and if you are patient and know the momentum, you will definitely know the right price, of course, it will be equivalent to what is given the benefits.
but there is also consumption or that must still be purchased for needs.
if you want to save, try looking at assets that can move in price, not electronics, which can change models at any time and continue to innovate. Of course the selling value will be different.
I prefer crypto. a strategic plot of land and fields or buildings.

[wxa7115]

It's not worth it to save your money in the bank if the inflation rate is higher than the percentage it gives to the interest rates. It's better to spread it to investments that has a higher percentage than the inflation rate because it will make you deal with the high prices of commodities through it.
I rarely save to the my bank accounts these days but I still try to put as much as I can so that, I treat it as an emergency fund but at most times, I convert it to bitcoin.

Which is precisely why it is such a bad idea to have your money at a bank at any moment in time, because they are always giving you less money than whatever is the inflation rate at that point, so not only banks are offering you even less money than inflation they are using your money to generate profits for themselves and they give you nothing for it.

And if this was not bad enough it can be quite problematic to get your money out of the bank in an emergency, so if you are wondering why people use banks at all, you're not alone, because I wonder the same as well.

[Don Pedro Dinero]

Well, but it makes sense to have some fiat money in the bank or at home for contingencies, and the rest to invest.

If years go by and you haven't had any unforeseen events for whom you had to spend the money, the purchasing power of that fiat money you keep will have decreased, but consider it a price to pay as insurance.

You should also bear in mind that we are in a period of higher than average inflation, which is about 3%. So, under normal conditions, the average price in two years would have risen by 6.3%, not double.

[Xxmodded]

It's not worth it to save your money in the bank if the inflation rate is higher than the percentage it gives to the interest rates. It's better to spread it to investments that has a higher percentage than the inflation rate because it will make you deal with the high prices of commodities through it.
I rarely save to the my bank accounts these days but I still try to put as much as I can so that, I treat it as an emergency fund but at most times, I convert it to bitcoin.

Around my environment know about how inflation values when saving money in the bank and some of them buy property assets and gold or silver as their saving how keep away from inflation values than saving in the bank. I think have bigger percentage inflation values when saving money in the bank although we got few percent about achievement or feedback giving by bank. I know when saving in the bank got emergency we can take and withdraw all money cash without any trouble yet, but when saving in some property or other investment way need time for selling and get it become cash money.

[LogitechMouse]

CONCLUSION
During inflation,
👉👉always purchase all you need on time without delay to avoid rapid increase of such commodity.

👉👉Unnecessary saving should be avoided. Savings should only be made from excess income which one doesn't need at that moment.

Lastly, investing is highly preferable to savings.

I don't want to put much money into banks and I only put there my emergency funds. Most of our salary goes to expenses and to investments. That's the best thing to do.

Why save unnecessary money if you have the opportunity to invest it into different assets? That's the problem for most of the people right now. It is easier to invest right now than the past but it seems that people prefer to just save money into banks because they believe that it will grow there but it's the opposite.

[jossiel]

Savings is secure but it cannot generate much interests. Therefore, I accept risks to invest my savings because I don't want my money lose its value too fast in the future

Savings in the bank guarantees interest but the thing is, you just can't keep up with the inflation.

The guaranteed interest they give is too little to best the inflation.

It is much better to take a risk into an investment with a chance of beating the inflation and making money from it.

[batang_bitcoin]

Which is precisely why it is such a bad idea to have your money at a bank at any moment in time, because they are always giving you less money than whatever is the inflation rate at that point, so not only banks are offering you even less money than inflation they are using your money to generate profits for themselves and they give you nothing for it.

And if this was not bad enough it can be quite problematic to get your money out of the bank in an emergency, so if you are wondering why people use banks at all, you're not alone, because I wonder the same as well.

Well, that's the business the bank has. They will use our money and we get less in return for that deposit. And with some news in other countries, they were even have hard time in getting their own money due to policy issues.

Around my environment know about how inflation values when saving money in the bank and some of them buy property assets and gold or silver as their saving how keep away from inflation values than saving in the bank. I think have bigger percentage inflation values when saving money in the bank although we got few percent about achievement or feedback giving by bank. I know when saving in the bank got emergency we can take and withdraw all money cash without any trouble yet, but when saving in some property or other investment way need time for selling and get it become cash money.

Putting their money in the precious metals are a good style and technique. Many millionaires does that but in our time and generation, bitcoin is the key man. It's essential to have an emergency money in the bank when you need some cash but you don't have to deposit all of it and let them use it to earn for their own business of lending and capitalism.

[fiulpro]

Savings can definitely help you a great deal, let us imagine a scenario when you won't have much saved money but would definitely have loads of commodities, which you can sell during inflation to somehow arrange it, but what you would need is a ' buyer ' during inflation this can be a problem as well therefore I do think you need to realize that no savings are unnecessary, ofcourse the money does not hold the same value as it did 10 years ago but it's still worth something, i always think that property investment would be a great deal! Since this would not only help you to have a better backup but at the same time it would also pave way for the future as well.
Invest in property
Invest in cryptocurrencies like bitcoins
Invest in education

[davis196]

Many people keep saying that the times of high inflation are the best time to borrow and spend as much money as you can and stop saving.
This seems very risky to me and borrowing money only for the sake of borrowing had always seemed like a stupid move.
Yes, saving fiat money in the bank in times of high inflation is definitely a wrong financial decision. I don't know if turning your savings into cryptocurrencies might be the right decision. Maybe it will be in the long term. Unfortunately the high fiat inflation is combined with a "crypto winter" on the crypto markets. Perhaps after one or two years, those crypto investments will pay off, when the bull run hits the crypto markets.