Part 1 of the BAWAG P. S. K. series, today on the subject of savings accounts & interest.
Our life is often about money. We deserve it, we spend it and - most importantly - we save! Because for many of us the subject of investment is a book with seven seals, BAWAG P. S. K. Light in the dark. From now on in the form of an information series on the subject of money, investment and fund knowledge.
What is the favorite place for most Austrians? Exactly, the savings book! At least when it comes to storing savings. 8 out of 10 people do it that way. It is said that a savings account is safe, nothing can happen to the money there. True, but only almost. The fact is: interest rates have been shrinking for years; they are currently at 0 percent. If, firstly, life becomes a little more expensive every year and, secondly, we do not get any interest on the deposits in our savings account, then the bottom line is that we are losing money. More precisely, between 1 and 2 percent of our savings. Let us assume that there are currently 10,000 euros in our savings book, then this loss amounts to 100 to 200 euros. Each year!
It would be better to find a place for our money where it increases in value. The formula for this is to invest. The number one basic rule: You should only invest the amount that will not be urgently needed in the next few years. Investing sounds more complicated than it is at first. Put simply, it is about consciously investing money in products such as stocks, bonds or funds. The goal is to generate income. Of course, that doesn't happen overnight, but in the long term our money will develop very well with it. The following applies: start small, get thorough information beforehand and ask experts for advice.
But everything in sequence! What are stocks, what are bonds, and what exactly does a fund do? More on this in the next part of the series.
