Savers are losing purchasing power quietly!

[Darker45]

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.

[philipma1957]

Like I said holding

126k cash from oct 6

To today means you can buy over 1.75 btc today vs only 1 btc last Oct 6 2025.

So holding cash short-term can be fine.

Long term holding of cash pretty much  always loses

[Oasisman]

One area that is less talked about is how saving money in the bank can slowly reduce its value over time.
This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

I think this has been discussed and is being talked about more frequently these days, as there are a lot of finance and investments social media creators who talk a lot about these. I know it already reached to many people, but not everyone has realized and understands it.
What people really don't realize is that they think their money is safer in the banks because it's unlikely to get stolen. However, people did not notice that the purchasing power of their money had gradually depleted. Those interest rates the banks are offering can't even keep up with the rapid inflation.
So, yeah, keeping your savings through purchasing commodities is always the best option to protect your money from losing its purchasing power. If you have high risk appetite, invest it in crypto or Btc. Banks have been "legally" stealing from us in broad daylight, lol.

[sleepfirefly]

the mindset back then was that we have to save everything as much as possible but it has shifted now due to inflation. instead of just saving up, investments have become very attractive to people. because the money isn’t stagnant or losing value, it’s actually keeping up with inflation as well since it’s gaining value. since there are also many investments options nowadays, people have plenty of choices to choose from.

[Makus]

This is actually very true, the economy changes whether we like it or not and those that save in fialy currencies would end up losing innthe long run, i don't think there is anyone that's not aware of this. if mr A saves five million naira in cash for five years and then mr B does the same and saves the same amount In bitcoin, who do you think would be richer after five years? the person holding bitcoin would obviously be richer. fiat would lose it's value in the long run, stop staking money in your bank account save in bitcoin.

[X-ray]

It's been that way for so long, yet there are many savers who don't really know they are losing their money.

Inflation has been on the rise and even the small effort of putting the money into some asset is much better than letting it sit in the bank account getting 0.7% p.a that is beyond useless.

Savers don't know that we need more effort than just saving some money to retain wealth in this big 21st century.

[jostorres]

Like I said holding

126k cash from oct 6

To today means you can buy over 1.75 btc today vs only 1 btc last Oct 6 2025.

So holding cash short-term can be fine.

Long term holding of cash pretty much  always loses

I won't say you are holding cash for short time here but instead you are just an investor looking for a better buying opportunity while your money waits in the bank account ready to be invested. This is where we find profitable opportunities. This does mean we have to either hold cash or cash equivalent stable coins like USDT, etc.

The markets will always be volatile it is on us how we want to utilize the opportunities and make profits out of it. We should have some cash kept aside for emergencies or to capture the right opportunity at right time. We can't regret after losing the opportunity, so it is always better to keep some cash in hand. People here prefer USDT though.

Long term cash holding is usually meant for people who avoid paying taxes. They already made their share of profits by avoiding the tax and might not really care about inflation. These people just want their money to be anonymous and safe from authorities. For others, holding cash for longer durations is not really a thing now as they prefer either investing or creating fixed deposits in bank.

[abhiseshakana]

Like I said holding

126k cash from oct 6

To today means you can buy over 1.75 btc today vs only 1 btc last Oct 6 2025.

So holding cash short-term can be fine.

Long term holding of cash pretty much  always loses

I won't say you are holding cash for short time here but instead you are just an investor looking for a better buying opportunity while your money waits in the bank account ready to be invested. This is where we find profitable opportunities. This does mean we have to either hold cash or cash equivalent stable coins like USDT, etc.

The markets will always be volatile it is on us how we want to utilize the opportunities and make profits out of it. We should have some cash kept aside for emergencies or to capture the right opportunity at right time. We can't regret after losing the opportunity, so it is always better to keep some cash in hand. People here prefer USDT though.

Long term cash holding is usually meant for people who avoid paying taxes. They already made their share of profits by avoiding the tax and might not really care about inflation. These people just want their money to be anonymous and safe from authorities. For others, holding cash for longer durations is not really a thing now as they prefer either investing or creating fixed deposits in bank.

I think many people notice about inflation which haunt their saving, but many people need short term money parking facility. Mater of fact bank give super instant liquidity facility for transfer, pay bill, shopping and can withdraw our many anytime, obligation, gold and other can not support this needed.  I don't know exactly but at my country many influencer show their balance amount in their bank account, from these phenomena i conclude that big amount in account are symbol of stability and safety. I don't know in other county, but in my country  modern economic structure require individual to have a bak account for  almost all economic activity, even an elementary school dtudent. Salary paymenmt need bank account, ecommerce payment need bank account, QRIS, automatic instalment payment also tax and administration payment. From all explanation we understand that bank very practical, this is what makes many people keep putting their money in the bank even though it is being eroded by inflation. I also put liquid money for transaction fund on bank account, beside that for 6 month emergency fund i also put on bank account and the rest my wide put on gold bar. To fight inflation, i do investing and put investment money on gold bar and property. For me, cash is a liquidity instrument, not an investment instrument.

[Marvelockg]

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

Most times, the charges that comes with even saving money in the bank is usually more than the gains or interest that is paid after a said duration of time that the money has stayed in the bank. saving in the bank for the sake of the interest that comes with it has gone obsolete and it does no longer make any sense that you are giving your money to bank to do business with it just because you are expecting a certain return from it in the future.

except you just want to save so you don't spend it on an irrelevant thing, then the point of saving makes little to no sense to me. even if the returns you are gaining from investment is not too much, investment is far better than savings because and in a time that we are opened to a lot of good investment opportunities, you want to keep your funds in a place where it long term returns in guaranteed.

[Findingnemo]

~
This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

Only the middle class people do that rarely but I doubt anyone is saving all the money in their bank account and thinking the interest coming from bank is kind of an investment and if they do then it is the stupidest investment idea ever. The least they can do is just buy the gold once in a while with that money.

[lizarder]

Only the middle class people do that rarely but I doubt anyone is saving all the money in their bank account and thinking the interest coming from bank is kind of an investment and if they do then it is the stupidest investment idea ever. The least they can do is just buy the gold once in a while with that money.

Yes, I rarely see people doing this because investment plans should be based on their level of effectiveness in achieving financial freedom. Saving all your money in the bank and expecting interest as a return is a sub-optimal choice, as they could be pursuing other, far more productive investments. If you don't want to take too much risk, buying gold and storing it would be far better than saving all your money in the bank.

That's why it's important to have a much more mature plan for how to use your money, because sometimes money can be far more productive than just sitting in the bank. If we don't have a plan, then hoping to earn interest in exchange for investments is a sub-optimal choice, as it will never lead to long-term financial freedom.

[Fortify]

Purchasing power is how much commodities your money can buy.

One area that is less talked about is how saving money in the bank can slowly reduce its value over time.

If a commodity can be bought for a certain amount and the price of that commodity increases, the value of your money would have been reduced by the increased amount.

When money is saved in your account, annual interest is accrued at a certain percentage, but people do not consider the inflationary rate which is always at a higher percentage.

In a nutshell your money buys less commodities.

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

I've encountered people who insist on saving because they want zero risk, but for anyone that has done just the slightest bit of research into finances will understand that is a bad idea. It's great that they've reached the point of fiscal freedom and responsibility that they have spare funds, but if you really want to succeed in life you need to make your money work hard, which usually means putting it into the market. Even now with elevated rates, there are plenty of accounts offering below inflation at 2-3% which means you are losing spending power each year or barely keeping up. Your money is static and only increases by the amount you're putting in with a little extra on top. Real investors understand that you must have a better risk to reward ratio than that, otherwise you will have a very slow life building wealth and likely get left behind.

[Findingnemo]

Only the middle class people do that rarely but I doubt anyone is saving all the money in their bank account and thinking the interest coming from bank is kind of an investment and if they do then it is the stupidest investment idea ever. The least they can do is just buy the gold once in a while with that money.

Yes, I rarely see people doing this because investment plans should be based on their level of effectiveness in achieving financial freedom. Saving all your money in the bank and expecting interest as a return is a sub-optimal choice, as they could be pursuing other, far more productive investments. If you don't want to take too much risk, buying gold and storing it would be far better than saving all your money in the bank.

That's why it's important to have a much more mature plan for how to use your money, because sometimes money can be far more productive than just sitting in the bank. If we don't have a plan, then hoping to earn interest in exchange for investments is a sub-optimal choice, as it will never lead to long-term financial freedom.

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.

[terrific]

the mindset back then was that we have to save everything as much as possible but it has shifted now due to inflation. instead of just saving up, investments have become very attractive to people. because the money isn’t stagnant or losing value, it’s actually keeping up with inflation as well since it’s gaining value. since there are also many investments options nowadays, people have plenty of choices to choose from.

In the old days, that's true. People tend to save in every money that they earn.
Some old traditions are even putting it in a jar that's made of clay and will bury it in the land.
That's the mindset they have back then because life was so simple before and there's not that much inflation.
But things have changed a lot today, we can still save but not everything that we earn because its value will decrease due to inflation.
So we find good investments that will grow itself and one of it is through Bitcoin.

[rachael9385]

The inflation is the main reason why this happens, imagine saving a fixed amount of money In your bank account for a period of five to ten years, how do you expect the economy to remain the same? things would definitely change and what you stashed up in your bank account account isn't going to be of the same value. This is why it is important to save in digital currencies like bitcoin that appreciates overtime.

[r_victory]

For this reason, it's good to look for investments that yield returns above inflation or that are adjusted for inflation. Here, where I live, there are some interesting investments for someone who wants to protect themselves from the devaluation of money and the decrease in purchasing power in the long term.

[BRINIRHA]

Purchasing power is how much commodities your money can buy.

One area that is less talked about is how saving money in the bank can slowly reduce its value over time.

If a commodity can be bought for a certain amount and the price of that commodity increases, the value of your money would have been reduced by the increased amount.

When money is saved in your account, annual interest is accrued at a certain percentage, but people do not consider the inflationary rate which is always at a higher percentage.

In a nutshell your money buys less commodities.

This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

Well, this is what we call the impact of inflation. The value of the money we hold continues to decline due to soaring prices of goods or basic necessities that we usually buy. And relying on interest growth in banks actually cannot keep up with the rate of inflation each year.
Perhaps in a report, the inflation rate is only around a few percent. But if we examine it more closely ourselves, we will be able to see the actual differences in the data that occur in the market or in our own lives. Usually, inflation for some goods can even exceed 10 or 20% in a year. This is usually in the prices of basic foodstuffs, which also cause the prices of other food necessities to increase. Meanwhile, necessities such as electronics and others are usually not too affected.

[tbterryboy]

Even though inflation keeps rising, banks always adjust their interest percentage accordingly benefiting the depositors. For example, if the inflation rate is 8%, banks will go ahead and offer 12% interest which will still benefit us. Bank deposits are usually for those who have money lying around with no real use and will be sitting idle for next couple of years. Their money sitting idle won't give them any profits plus they will lose a chunk to inflation, so these people prefer depositing in banks to gain some interest while keeping the money safe.

Maybe savers should change strategy and move some funds out of savings account into investing account which will also make them yield profits while still holding some portion with banks. This is where we should consider bitcoin or gold to tackle inflation.

[shinratensei_]

Even though inflation keeps rising, banks always adjust their interest percentage accordingly benefiting the depositors. For example, if the inflation rate is 8%, banks will go ahead and offer 12% interest which will still benefit us. Bank deposits are usually for those who have money lying around with no real use and will be sitting idle for next couple of years. Their money sitting idle won't give them any profits plus they will lose a chunk to inflation, so these people prefer depositing in banks to gain some interest while keeping the money safe.

That's not really true, there are many kinds of saving and traditional account is at 0.39% APY for 2025 while inflation rate is 3%. Only specific saving accounts actually brings in higher yield than the inflation because the money doesn't magically come from thin air.
It needs to come from somewhere and yield could go up only if fed raises interest rate. It's the exact reason when interest is raised, there will be inflow from risky asset to fiat and make USD stronger.

[EarnOnVictor]

-Snip-
This is how persons lose money, not because it is stolen, when it is left in the bank, prices are rising rapidly, much more than the interest rates.

This is not new, and it's why people have been looking for savings alternatives, which includes online and offline investments and properly acquisition. We all need something that will hedge our money against inflation. It is a two-edged sword in countries where:
1. Inflation is pronounced locally, and
2. Their currency is depreciating against foreign currencies.

It got worse in my country to the point that if you saved money in the bank for the past 15 years, be sure that it would have devalued by over 10 times. Oh yes, I mean that!