That's a cultural point. I come from a country where people is used to be very strong savers, even at the cost of living in extreme downshifting. Now I live in a country (better said, my specific area is so) where being spendthrift is routine. No mind if they are lower middle-class or (relatively) poor, but habits like to go to a shopping mall out of their city, hairdresser every week, very expensive parties (yes, it's very common to spend the double that cost my second degree in a single day for a birthday party), taking a loan to go abroad to see a football match regularly happen. So no surprise if the currency account or better, the savings and investment account of many people is always empty. They simply don't save. They think a Netflix subscription is of the utmost importance. Now, in my former country, people that only earn a minimum salary can't save because they earn too small and it's 20 years there isn't a salary increasing while inflation is skyrocketing. But since I have memory, a lot of people (especially of the old guard) always preferred to save instead of purchasing in the consumer discretionary, expensive brands, etc.
Is there in your country the habit to save money to make investments?
- Thread starter Pousinha
- Start date
That is also what my countrymen are doing saving some pennies for a future investment. In my case, I already started my investment, and thanks to my savings because I was able to capitalize on my investment through franchising.
- Thread starter
- #6
In my former country it works more or less like yours. In my current country, bank accounts face a division: ordinary currency account that doesn't earn interests, rewarded currency account (usually, it's our fintechs offering this kind of option) and savings accounts. The 2 latter earn interests. And our bank apps include features to invest in depositary receipt (CD investments), funds, promissory notes, federal treasury and stocks. Federal treasury and promissory notes proved to be the best bank investments in my country. Unfortunately, lot of people that spend until the last penny can't access.
That's one of the reasons why I prefer to invest rather than keep money in the bank. Mutual funds and crypto do not require large capital because we can invest regularly. We can also buy perl shares in mutual funds.
In my location, people tend to save money and buy their own home because rent is expensive. There are people who also invest in stocks, mutual funds and bonds. Some also love to invest in gold.
There are many people who tend to make money and they are also saving money as well at the same time. They know how and where to invest money in the first place. They are clever businessmen.
You are right that our money is safe in the bank, but it will always be reduced because many fees will be deducted, such as ATM fees, Mbanking fees, etc., of course, the rates are different for each transaction. If you deposit $1k in the bank, the fee will be deducted automatically every month. a year later we check the balance, of course it will decrease a lot because I have proven this in the bank account that I have.
Well, this is one of the main reasons why I never store my money in banks. I always store and secure my money by using many different kinds of payment systems and payment processors like Perfect Money, Payeer, etc.
