Advantage of Savings Accounts

A  jar saved  Sounds like good idea, but what’s the best way to do it?

If you save your money or dollars in a jar in the closet, you may think that your money is safe. Perhaps, but you’re actually losing money!

Why? Inflation makes money less valuable over the years. Inflation, according to the generally accepted definition, is an increase in the general level of prices over time, and it results in a decline in the real buying power of money. When the general level of prices rises, each dollar buys fewer goods and services.

Say your jar of cash totals $100 this year, with which you can buy twenty loaves of bread. But next year those same twenty loaves of bread will cost $104. You’ve still got the same $100 in your jar–so for all practical purposes you’ve lost 4 dollars!

The standard rate of inflation is four percent. This means that if you have onedollar this year, you will need $1.04 next year to buy the same amount of goods and services. If you have only the same dollar, you’ve lost buying power.

What’s a woman to do? You want find a balance between security–making sure you don’t lose your money–and making it grow by investing it, which represents risk. Anytime you take your cash out of the jar and give it to someone else to invest, you’re adding the element of risk.

But don’t worry you can decide either to  invest in the right place or save your money with a reliable bank or financial institutions.

I hope this secret will help you


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