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Editorial Invest in Slovakia
You'll recognize it. The internet is full of "wise" advice about money, and then there's all the well-meaning advice from parents, friends and family. Even though you get a lot of them in life, that doesn't mean they're all helpful, too. We've rounded up some of the worst financial advice that many people still think is right to this day.
Some of you may have said to yourselves at this moment "but if you're in a bank, my grandmother advised me to keep my money in a sock or under the mattress". Anyway, money that stands still for a long time, either in the bank or in cash at home, lose their value year after year due to inflation.
Although this advice was once very prudent, it is now a relic. However, it is precisely what parents instil in us from a young age, for example, by motivating us to to save money for the piggy bank. Yes, it is a tool that teaches children not to spend all the money they get, and that is respectable. However, this approach misses the other side of the coin, money appreciation. And so the children grow up, and they nicely put away part of their paycheck in a savings account, or worse, in a checking account, instead of appreciating the money, investing it.
Today it is countless investment opportunities, from more conservative ones such as term deposits, bonds and real estate crowdfundingto more aggressive ones with high non-guaranteed returns, in the form of trading commodities and company shares.
Many people perceive debt as something negative to this day. The more ignorant among us fixate on the quick repayment of all bank loans, including Mortgage. Well, those are the ones, under current annual interest rate conditions rates that are below one percent, it really doesn't pay to pay back faster than necessary.
Today, even with the most conservative investments, an investor can make a profit above inflation and put himself and his entire family in a better financial situation. Simply put, investment returns can far exceed loan interest payments.
You don't have yours yet banker? Go to your bank tomorrow and ask the lady at the counter if if you're entitled to one. It's certainly wise to use the free services of a banker, but you shouldn't blindly follow his advice. Never remember to educate yourself about personal finance.
There are almost innumerable options for capitalising on your spare funds. However, a banker has only a limited number of these available to offer to a client. Therefore, at the very least, you should inquire about other investment options and, if something catches your eye, explore the area more.
What good advice you have you received in your lifetime? Let us know and we look forward to seeing you at next article from the world of investment and finance.
