3 min.
Editorial Invest in Slovakia
Who among us would like to have a bank account balance of 0 euros? Probably no one. Well just like no money in a bank account, it's not wise to keep a large amount of money in there either. In today's article we'll look at the reasons why.
Did you know that the Slovaks have EUR 24.9 billion in current bank accounts?
If you have a properly set family budget, every month you should get an increase. Whether it is higher or lower, you have to decide what to do with the remaining money. There are several options. We believe that none of you keep your savings in a sock or under your mattress anymore. In addition to losing value at the rate of inflation, money so deposited is also exposed to threat of theft and physical damage (children, dogs, fire, etc.)
The second option to accumulate funds is deposit it in a current account at a bank. While this option is undoubtedly more responsible than leaving cash at home, it has its pitfalls.
As with cash at home, the same applies to finances deposited in the bank inflation. Too much money in the bank can threaten your financial stability in the long term, and thus slow down the achievement of your financial goals.
All the money you have in your current account appreciates in value virtually no interest. The most you can earn is a few euros a month, which will be eaten up by account maintenance fees. In other words, you will get a higher appreciation with any other alternative of saving your money.
Whether you have money saved in investments, business or real estate, with each of these alternatives you will from time to time Milestone. You reach an appreciation of the first thousand euros, the value of your investment exceeds a certain level and these perhaps tiny and seemingly insignificant milestones give you a reason to be happy, proud and provide a kind of motivation for further appreciation of your assets.
This factor is clearly absent when holding funds in a current account with a bank and Spending "surplus" money seems easier and more logical, which ultimately reduces the value of your assets and puts your financial stability at risk, not just tomorrow, but in a few years and ultimately in retirement.
If you want your money to appreciate in value, it's good to look at the people who are already doing it today. Rich people hold only a certain amount of liquid money in current accounts, usually in the amount of 3-6 of monthly household expenditure. In addition, they store everything in assetsthat appreciate in value over time.
Among riskier investments intended for the appreciation of money, we could classify the deposit of funds in cryptocurrencies, individual stocks on the financial markets, or investing in your own businessif it is in the start-up phase or has not yet reached the black numbers.
With a moderate risk, you can save money, for example in large index funds and ETFs, or, for example, in art, precious metals and the like.
The lowest risk to your money exists when investing in real estate and bonds, which, however, mostly have only a low rate of appreciation. You will also get little value for your money on fixed-term deposits with banks.
One of the ways to invest in real estate without the need for tens of thousands of euros is via the platform Invest in Slovakia. Join more than 400 active investors and invest in your country's development. You will enjoy an average return of typically 11 to 14 % p.a. (per year).
