Savings during inflation

[ChiBitCTy]

First off those generators look different and is that a marketplace site like eBay ? I’m not sure that accurately depicts the difference due to inflation. You do have a good point, savings accounts during high inflation times are essentially losing money, but that doesn’t mean you should be saving money like that. It’s still important to have cash on hand in case of emergencies. Also, if you do need to be storing money in savings, make sure you find high yield savings: example .. in the US a Chase Bank savings account rate is around .01% however if you choose an online only bank like Ally, their savings rate is 2%.   

[1714545826]

1714545826

[trendcoin]

...

It is quite normal for the prices of energy-related products to increase during the energy crisis. I could not follow the generator prices, but I followed the prices of solar energy systems almost instantaneously. I have personally witnessed exorbitant increases like you have encountered... I think the energy crisis will not be a temporary problem. If you want to buy energy-related products, you can consider purchasing immediately before more demand accumulates. Even if a normalization begins between Russia and the West, it may take much longer for prices to normalize again.

[Luqman]

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

Yes, buying something for investment should be as quickly as possible. For example, if you plan to buy land, gold, or Bitcoin. These 3 commodities are increasing their values gradually, the prices will be so much different in the next few years.

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

What do you mean by unnecessary saving?
It is true, commonly the savings are generated from extra money got from our income.
It is rarely happening that we force savings while we have lack money to use for daily necessities.

[Mr. Magkaisa]

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.

-  I agree with what you said Sir, there is really nothing the bank can do when inflation exists. And almost all countries around the world today are facing this type of crisis and it cannot be stopped lightly unless the government of each country has another alternative solution.

That's why business people use their own methods to overcome this inflation. And it is also right that since the increase in prices cannot be stopped, it is better to put the money in businesses that can circulate the capital quickly so that it can grow in a short time, but of course that still depends on the business you invest it in. , so thorough investigation is required before you invest in it.

[autumnleaf]

Instead of depositing my fiat money in the bank, I prefer to invest in assets that produce income while not requiring a lot of work, such as rental properties, and I also occasionally buy bitcoins. When inflation is high, buying bitcoin is an extremely smart investment move. It's important to manage your finances wisely and spend money in a way that meets your needs.

[CageMabok]

To make our future better, we must make it a habit to save, this will allow us to manage finances well, inflation always occurs and saving will make us not short of money and certainly not in debt when unexpected expenses occur, and I think saving in cryptocurrencies is a better solution than saving cash in banks.

In the end you will also rely on the bank to withdraw money, right?
So don't say it's not good to keep cash in the Bank because everyone needs to make three different deposits in their life and that includes keeping a certain amount of money in the Bank.

You can also apply your deposits in three different modes by placing 40% of it in the crypto space, and 30% of it in the Bank and another 30% in your trouser pocket. Because it is for your daily needs without having to go to the bank every day or always monitor your crypto wallet every day. Because if you rely solely on your deposits in the crypto space, it also puts you at risk when there is a big downturn in the market, unless you only hold stablecoins that don't have a significant increase, as well as a decline.

[boris singer]

Most people will think to leave a monthly salary of 10% or 20% and then save at banks, but when inflation occurs or bad things such as out of work he uses the money for needs and when he has not gotten any work money is up, the mistake made is Storing money in banks that will not increase, it's better to use for investment.

Saving in the bank is only an option at this time because it is difficult to save money, especially with the current conditions which are at a point where money may be at its lowest point due to inflation.
Investment is a good thing, but indeed in this case we must also be aware that when investing we must also be able to see some possibilities that occur because investment is not only about saving money and making profits.

[Synchronice]

Savings during inflation is a bad idea because take a look at this situation:
The 2020 year - I have $1000 in a hidden place at my house - inflation is 10%
The 2021 year - The purchasing power of my 2020s $1000 is $900 right now. I lost $100 out of thin air. Imagine, you didn't buy thing X to save $100 and keep our $1000 but the inflation takes that $100 out of your pocket.

That's why you need to either become a professional in a job with the best job security or always chase to create at least a small business like a restaurant or cafe or food shop that will bring you some profit.

[Mauser]

I agree with you, if you need something now there is no point in waiting. This year we are seeing inflation rates of 10+% and even for next the forecasts are already at 6-8%. Any purchase that is essential shouldn't be delayed, but any purchases that are luxury and non essential I would advice against it. The economic growth forecast are still very bad things could get worse. As for cash, there is no point in holding large amounts of it. A certain amount for emergencies is necessary and should always be kept, but larger amounts should be invested. The central banks started slowly this year to raise interest rates, and it's still going to take months for banks to give the rates to customers. And even then making 1-2% interest on your savings account is nothing compared to the inflation rate. Better to invest in stocks and crypto currencies.

[bakasabo]

Savings during inflation is a bad idea because take a look at this situation:
The 2020 year - I have $1000 in a hidden place at my house - inflation is 10%
The 2021 year - The purchasing power of my 2020s $1000 is $900 right now. I lost $100 out of thin air. Imagine, you didn't buy thing X to save $100 and keep our $1000 but the inflation takes that $100 out of your pocket.

That's why you need to either become a professional in a job with the best job security or always chase to create at least a small business like a restaurant or cafe or food shop that will bring you some profit.

Your given example can work in different way. Imagine you did not hide that thousand, but have bought something. In 2021 your loss will be $1000 in fiat, but you will have an item, that is already used and cant be sold for $1000 on aftermarket and depreciation has decreased its value. What is better in that case? $900 or "thing X" that does not cost $1000 ?

P.S. Do you know that small business will bring first profit after a long period of working with losses? Small business will be first to die during high inflation, because it cant compete with huge store and restaurant chain.

[barbara44]

Savings during inflation is a bad idea because take a look at this situation:
The 2020 year - I have $1000 in a hidden place at my house - inflation is 10%
The 2021 year - The purchasing power of my 2020s $1000 is $900 right now. I lost $100 out of thin air. Imagine, you didn't buy thing X to save $100 and keep our $1000 but the inflation takes that $100 out of your pocket.

That's why you need to either become a professional in a job with the best job security or always chase to create at least a small business like a restaurant or cafe or food shop that will bring you some profit.

Your given example can work in different way. Imagine you did not hide that thousand, but have bought something. In 2021 your loss will be $1000 in fiat, but you will have an item, that is already used and cant be sold for $1000 on aftermarket and depreciation has decreased its value. What is better in that case? $900 or "thing X" that does not cost $1000 ?

P.S. Do you know that small business will bring first profit after a long period of working with losses? Small business will be first to die during high inflation, because it cant compete with huge store and restaurant chain.

Money spend in things that you think are worth it and you enjoy is not a waste of money while the re-selling value of it will also depend on the item itself. If that was a phone or some newer kind of gadget then chances are that it will depreciate in value just a like a fiat but if it was a vintage one or kinda antique then I think things like that can become expensive the longer you hold and lastly if you buy the money with an asset such as bitcoins, its value can also rise over time.

On the business part, I think all starts with a small business and the losses are first felt before the gains so we better not give up once we think the results are not right.

[Fortify]

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.

While inflation is a big factor as you described it, we are still barely over Covid which broke all sorts of supply chains, many jobs were lost and in some countries people were very limited with what they could do for up to 2 years. Places like China, which produce all sorts of things - from the smallest of components up to the larger finished products themselves, is currently still undergoing a weird zero Covid strategy instead of just accepting it like the rest of the world. It's bizarre to see their huge manufacturing hubs shut down with very little notice after just a handful of cases, which can cause months and maybe even years longer disruption. The war in Ukraine is also causing basic staples like food and oil to go up, which has ripples all throughout the economy.

[Silberman]

I agree with you, if you need something now there is no point in waiting. This year we are seeing inflation rates of 10+% and even for next the forecasts are already at 6-8%. Any purchase that is essential shouldn't be delayed, but any purchases that are luxury and non essential I would advice against it. The economic growth forecast are still very bad things could get worse. As for cash, there is no point in holding large amounts of it. A certain amount for emergencies is necessary and should always be kept, but larger amounts should be invested. The central banks started slowly this year to raise interest rates, and it's still going to take months for banks to give the rates to customers. And even then making 1-2% interest on your savings account is nothing compared to the inflation rate. Better to invest in stocks and crypto currencies.

You are talking about a very important economic aspect that is seldom acknowledged, this is called the velocity of money, which is a measure of how fast money is changing hands during a period of time, the more people get worried about the stability of the economy and the high levels of inflation they are experimenting the faster they spend their money on the things that they truly need, this means that no one wants to hold fiat for long and this can eventually create a vicious circle from which there is no escape.

[ultrloa]

I agree with you, if you need something now there is no point in waiting. This year we are seeing inflation rates of 10+% and even for next the forecasts are already at 6-8%. Any purchase that is essential shouldn't be delayed, but any purchases that are luxury and non essential I would advice against it. The economic growth forecast are still very bad things could get worse. As for cash, there is no point in holding large amounts of it. A certain amount for emergencies is necessary and should always be kept, but larger amounts should be invested. The central banks started slowly this year to raise interest rates, and it's still going to take months for banks to give the rates to customers. And even then making 1-2% interest on your savings account is nothing compared to the inflation rate. Better to invest in stocks and crypto currencies.

You are talking about a very important economic aspect that is seldom acknowledged, this is called the velocity of money, which is a measure of how fast money is changing hands during a period of time, the more people get worried about the stability of the economy and the high levels of inflation they are experimenting the faster they spend their money on the things that they truly need, this means that no one wants to hold fiat for long and this can eventually create a vicious circle from which there is no escape.

Inflation really hit bad for people who save money from the bank that's why instead of hiding it their with low interest rate per annum they gotten much better if they just invest it on other things which can generate them more income. And the best investment for me is on real estate since the value of property is rising over the years and also you can build a rent out properties so that you can have a continuous passive money flow for sure from doing this we can beat the inflation which is hurting so bad on normal people.

[ChiNgadOr]

I agree with you, if you need something now there is no point in waiting. This year we are seeing inflation rates of 10+% and even for next the forecasts are already at 6-8%. Any purchase that is essential shouldn't be delayed, but any purchases that are luxury and non essential I would advice against it. The economic growth forecast are still very bad things could get worse. As for cash, there is no point in holding large amounts of it. A certain amount for emergencies is necessary and should always be kept, but larger amounts should be invested. The central banks started slowly this year to raise interest rates, and it's still going to take months for banks to give the rates to customers. And even then making 1-2% interest on your savings account is nothing compared to the inflation rate. Better to invest in stocks and crypto currencies.

You are talking about a very important economic aspect that is seldom acknowledged, this is called the velocity of money, which is a measure of how fast money is changing hands during a period of time, the more people get worried about the stability of the economy and the high levels of inflation they are experimenting the faster they spend their money on the things that they truly need, this means that no one wants to hold fiat for long and this can eventually create a vicious circle from which there is no escape.

Inflation really hit bad for people who save money from the bank that's why instead of hiding it their with low interest rate per annum they gotten much better if they just invest it on other things which can generate them more income. And the best investment for me is on real estate since the value of property is rising over the years and also you can build a rent out properties so that you can have a continuous passive money flow for sure from doing this we can beat the inflation which is hurting so bad on normal people.

People have seen the reason why they don't new to save money again in the bank and they do buy what they really need now that price of goods are increasing Everytime at before the price will go worse. Inflation is everywhere and everybody is complaining about it making savings not to worth better even though the profits behind it worth the timing.

The government are not doing anything to stable the price of goods to become stable but all we could do not is rather to invest is projects like Bitcoin or to better things of other ways we can use our funds that could bring better profits to us.

[STT]

Savings are frequently inferior to commodities during inflation (but not always because nothing is easy or certain, ^instability/volatility).   There is apparent inflation and inflation of the monetary base which later becomes more obvious, we already knew this inflation was coming because of the prior monetary base expansion.   The main problem noted by central banks is constricted supply, not everyone can buy at once or the price spikes and so adds further to perceived inflation in the population leading to a run away effect.    
  Even if they cure this current outbreak of inflation its still going to be true this decade and the next that people should use money to avoid future bills, which ever method presents itself is probably quite viable.   Where as saving cash and hoping interest rates reflect or counter inflation is unfortunately usually a losing situation.   The biggest winner from the gaps left in monetary circulation is the government via its debt, the ease at which it can spend is greatly aided by the plight suffered in the populations wages and usage of national currency.   Hence many people conclude here stick with BTC, all known issuance is the same exact schedule as always which no FIAT can say similarly.

[2stout]

Best bet is if you weren't prepared for inflation this time, then lesson learned and be prepared for it next time.  Reason being is this is a great opportunity to build wealth, for example, look at the cheap prices of some of the better stocks and Bitcoin.

[andriarto]

I agree with you, if you need something now there is no point in waiting. This year we are seeing inflation rates of 10+% and even for next the forecasts are already at 6-8%. Any purchase that is essential shouldn't be delayed, but any purchases that are luxury and non essential I would advice against it. The economic growth forecast are still very bad things could get worse. As for cash, there is no point in holding large amounts of it. A certain amount for emergencies is necessary and should always be kept, but larger amounts should be invested. The central banks started slowly this year to raise interest rates, and it's still going to take months for banks to give the rates to customers. And even then making 1-2% interest on your savings account is nothing compared to the inflation rate. Better to invest in stocks and crypto currencies.

You are talking about a very important economic aspect that is seldom acknowledged, this is called the velocity of money, which is a measure of how fast money is changing hands during a period of time, the more people get worried about the stability of the economy and the high levels of inflation they are experimenting the faster they spend their money on the things that they truly need, this means that no one wants to hold fiat for long and this can eventually create a vicious circle from which there is no escape.

Inflation really hit bad for people who save money from the bank that's why instead of hiding it their with low interest rate per annum they gotten much better if they just invest it on other things which can generate them more income. And the best investment for me is on real estate since the value of property is rising over the years and also you can build a rent out properties so that you can have a continuous passive money flow for sure from doing this we can beat the inflation which is hurting so bad on normal people.

People have seen the reason why they don't new to save money again in the bank and they do buy what they really need now that price of goods are increasing Everytime at before the price will go worse. Inflation is everywhere and everybody is complaining about it making savings not to worth better even though the profits behind it worth the timing.

The government are not doing anything to stable the price of goods to become stable but all we could do not is rather to invest is projects like Bitcoin or to better things of other ways we can use our funds that could bring better profits to us.

In fact, the government did various ways to suppress inflation, and could not eliminate it. this happens every year of course inflation increases, and nothing can prevent it. especially in my country there is an increase in oil prices, so of course it will make all the prices of goods go up. the government with all its reasons give reasons. but I agree to overcome it we have to invest, and if we have a lot of money, of course the property business will be profitable. or we can start investing in bitcoin, whichever amount of money we have can be converted to btc

[Pujangga]

Savings is the most important thing as long as we live, there are many things that we need and should need money, if we don't save and only rely on active income then we will not be able to buy the things we want, especially when inflation is of course savings is a good thing to anticipate worse things.

[bakasabo]

Savings during inflation is a bad idea because take a look at this situation:
The 2020 year - I have $1000 in a hidden place at my house - inflation is 10%
The 2021 year - The purchasing power of my 2020s $1000 is $900 right now. I lost $100 out of thin air. Imagine, you didn't buy thing X to save $100 and keep our $1000 but the inflation takes that $100 out of your pocket.

That's why you need to either become a professional in a job with the best job security or always chase to create at least a small business like a restaurant or cafe or food shop that will bring you some profit.

Your given example can work in different way. Imagine you did not hide that thousand, but have bought something. In 2021 your loss will be $1000 in fiat, but you will have an item, that is already used and cant be sold for $1000 on aftermarket and depreciation has decreased its value. What is better in that case? $900 or "thing X" that does not cost $1000 ?

P.S. Do you know that small business will bring first profit after a long period of working with losses? Small business will be first to die during high inflation, because it cant compete with huge store and restaurant chain.

Money spend in things that you think are worth it and you enjoy is not a waste of money while the re-selling value of it will also depend on the item itself. If that was a phone or some newer kind of gadget then chances are that it will depreciate in value just a like a fiat but if it was a vintage one or kinda antique then I think things like that can become expensive the longer you hold and lastly if you buy the money with an asset such as bitcoins, its value can also rise over time.

On the business part, I think all starts with a small business and the losses are first felt before the gains so we better not give up once we think the results are not right.

Synchronice was talking not about "things that you think are worth it and you enjoy". He just had $1000. If he wanted to have something to enjoy or valuable, he would have spend this thousand on it. But he did not. That is why I though that if he would buy something, that items value will only go down. As to vintage or antique items - it is clear that their value could increase, but there are no guarantee of it. Besides it is not easy to sell such item; because among all the people on the planet, the amount of collector are not very high. It might turn, that buying vintage or antique items is an instant money loss, because who need old stuff ?