needful unhelpful things

Wednesday, October 05, 2005

why it's not safe to save

Because the inflation rate is pretty damn high, that's why. It might even be higher than the interest rates offered by most banks. So what happens if you save money? You'll lose 'em. Not because they're lost but because the value will decrease. Here's how it works, I think: let's say you have 1K bucks and that amount of money can buy, say, a computer or whatever which happens to cost approximately 1K bucks also. But instead of buying it, you kept your money in a bank. In a month's time, with inflation rate at, say 2.8% and interest rate offered by your bank at 2.1%; the computer or whatever will cost 1028 bucks but you'll only have 1021 bucks. 7 bucks short. Go find a cheaper computer.

So is 'save your money' an ingenious advice at times like these? I doubt it (keeping your money under the pillow is a much idiotic way of dealing with the current situation). So to those who have the capacity and chance to say somethig about it, say something else. Don't say 'save.' Because I don't believe it's wise to do so.

5 Comments:

  • I second that. Hehe

    By Anonymous Anonymous, at 4:20 PM  

  • Depends on where you save, Jibam. Or invest.

    The best-performing mutual funds have a yield of 21% a year. Of course, there's a risk of it not performing and you can lose money.

    ASB gives about an average of 6-7% (so far) in a year. There are also bonds and shit in this category (low-risk bullshit).

    Investing long term in the stock market can give you varying results, based on the current status of the economy.

    There's also property investment, forex, blablabla.

    So don't save. Invest.

    By Blogger Amir Hafizi, at 10:23 AM  

  • chi:waaa welkam,welkam
    amir:my words exactly.invest.even in less complicated situations in life.like,if you need a new shirt or something;find the best value for money.don't save and wait till next month.prices of all shirts will go up.and you lose.so invest.truer words were never spoken.written.

    By Anonymous Anonymous, at 12:54 AM  

  • yep, i sec ultra's opinion... invest is the keyword gbam bo, though u might wanna be extra carefull before doing so...

    By Blogger Kuman, at 10:14 AM  

  • I think at our age we shouldn't be so crazy about making money lah. The kind of money we get is barely enough for us to survive, what with all the debts and loans to settle. Macam mana nak simpan wey??

    Errr.. does that make me an ageist?

    By Anonymous Anonymous, at 4:23 PM  

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