Savers are losing purchasing power quietly!

[dansus021]

Savers are losing purchasing power quietly! Well if you just blindly save momey without interest you losing power to buy Inflation is double blade.

But in bigger picture inflation is silent killer you didnt notice it, Indonesia my country had targeted interest rate about 2% per year means my money losing value 2% each year. That its why we need investment traditional investment like Gold is act against inflation now there is Bitcoin and stock.

[slapper]

Its not that people dont know. Some part of them knows. You know you are feeling it when groceries are more expensive and your account is no different. 

The bank interest is beside the point at this point. Technically you're making money. But earning 3% when inflation is running at 6, 7, sometimes in some economies even higher, we cannot accept that

The generational factor is underappreciate. The advice being passed down was being formulated in a different interest rate environment, a different inflation reality.

What exactly are you saving up for, if the thing you're saving up is shrinking in real terms every single year? At some point the discipline is self-punishment?

[Bluedrem]

If people had considered the decline in purchasing power due to inflation, they would never have wanted to hoard fiat currency. But it doesn't take rocket science to understand inflation. If someone analyzes what $10,000 could have bought ten years ago and what $10,000 can buy today, then inflation is very easy to understand. The government of a country borrows money and prints more currency to finance the loan, and the more the currency is in circulation in the country, the more the value of the currency decreases.

[Cheema02]

That's why it's best to make use of your money than let it sleep in the bank. I don't mean to just spend it on whatever comes to mind. I mean, make it productive. It isn't easy, of course. It takes a lot of research, analysis, effort, time, discipline, and so on. But that's what it takes if you want your money to bear fruits.

However, that doesn't mean we totally avoid keeping money in the banks. We must always have to set aside a certain amount for emergencies and other unforeseen expenses. This amount we surrender, in a way, to slow death by inflation.

Your point about use money to make money is based on reality and its true that many individual thinks that to keep their savings in banks is safe but they don't know after a period of time due to inflation their money can lost its worth gradually. So if they invest thier money wisely instead of to take it in banks then money grows gradually with time and its becomes a source of income. But its not easy to investing money because its requires proper knowledge and planning and patience because in investing also there is a chance of loss. So maintain money in banks is also have importance because it help out in emergency. No doubt inflation can affects its value with time but its a useful way to stay stronger in panicked situation. So there for we should go in balanced situation like out of savings some money can be put in banks and the other is investing in good companies in this way we have financial security in the form of savings in banks and also our money keep growing through investment.

[lizarder]

It is probably how new gen people think? Not sure because old people who are illetrate also aware of the fact that inflation will eat the purchasing power of the money so they should invest their savings in gold or real estate so their heirs can make use of it in the future. But I am not sure about who is thinking about saving money in their banks in this 21st century.

In fact, there are still some people who use bank savings as a place to save money compared to buying gold as an investment step. This shows that the mindset regarding inflation is still weak and the value of the currency continues to depreciate in the long term so that they do not have a much clearer plan regarding the use of the money they have. This awareness should arise after fiat currencies continue to decline in value so that it will not be productive to save money as a whole in the bank under any circumstances.

This kind of mindset should be able to be changed when they have a much clearer plan for how to use their money so that wealth growth can increase in the long term. If you don't want to be involved in big risks then buying gold and saving it is much better than putting all the money you have in bank savings because this has been proven to be much better.