A simple example: you can save up $150,000 to buy a house, but in a few years its price will already be $250,000. An example so that you can estimate the effect of inflation. Suppose you had 10,000 hryvnias. and $10,000 in early 2000. By the end of 2020, their real purchasing power will be UAH 687 (-93%) and $6,361 (-36%), respectively. This means that now for 10,000 hryvnias you can buy the same amount of goods and services as in 2000 for 687 hryvnias. Accordingly, by simply keeping funds in the account, we face the fact that your savings will lose their purchasing power. How to preserve the value of your money.
That will bring income higher
The main option is investing. During the waiting period, money should “work” to at least maintain its value, and ideally – to increase. Therefore, it is Belize B2B List necessary to choose investment options than the inflation rate. Let’s immeiately consider in a current account. If you starte saving $1,000 every month at the beginning of 2000, by the end of 2020 you will have accumulate $240,000 (240 months * $1,000). Now let’s consider three alternative scenarios: you also save $1,000 a month.
The amount of savings
You invest it at the same time, and your savings bring 5%, 10%, 15% income per year. Then by the end of the same year 2020, you will be able to AERO Leads accumulate $411,000 (+71% of the base scenario), $759,000 (+316%) or $1,497,000 (+624%), respectively. Sounds like magic, doesn’t it? In fact, it is. Money brings money, which also brings money. If you give them time, the earne capital will turn out to be even greater than the initial investment. It seems that everything is simple. But how to achieve 10-15% profitability per year, and even so that this profitability is not “eaten” by inflation? This is not an easy task. Let’s consider the available options.
