The laws in my country require all people who are in formal employment to pay a certain [percentage of their monthly income into a social security fund. These funds are invested by a statutory body. Upon attaining retirement age, members of these fund receive their savings, plus the interest accrued over the years.
Is there in your country the habit to save money to make investments?
- Thread starter Pousinha
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There are many rich people who never save money and they make investments instead. They know that saving money will only devalue the money, so they invest money instead of saving it.
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- #23
Only it's to be careful about payment processors: they aren't true banks. They can change their rules and stop their activities in this or that country whenever it pleases to them. I only use them as a bridge to finally withdraw my hard earned money to my bank account.
That's how it works among all countries I have lived and have visited, both European and Latin American (the two big Mercosur members Brazil and Argentina). Since having opened a small business, I too I'm paying to Social Security a percentage of minimum salary (5% per month) to secure a pension and other workers' rights.
Maybe they live in a country where savings accounts don't generate interests. In mine, there is a dear old savings account generating the 6% per year of interests. The new savings account (the old became unavailable for new customers since 2015) oscillates, depending on the amount of national interest rate. Not the best investment (in my country, savings account is considered an investment), but in any way is better than no interests at all and an option for beginners.
It is true that in my country many people save for investment purposes. There are people who save little by little to buy gold/livestock/land/property. I also want to do the same, I save to buy gold bars for investment.
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- #25
My mother liked to save to invest in gold, but she didn't know how golden bars' commerce work. So she preferred by far to invest in golden jewels. And this is the same I did, having inherited the same love for golden jewels, pearls and silver (even if silver isn't profitable as gold, nor half as gold, at least in both my former and current country).
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- #27
Your country looks like mine, in terms of lacking investment culture. There are lot of spendthrift habits and it's very rare to see anyone getting rid of his/her Netflix subscription to allocate that money to invest properly (for ex. in the secure federal treasury investment earning an 11% annual interest).