We ALL start somewhere and frankly speaking the first stage is always to save. Whether you want to embark on an education career, projects or business establishment as the case may be. Starting the habit of capital raising must become a mindset. Either you'll work to save or look for angel investors around who can gradually help you gather up a substantial amount to kickstarts what you envisioned. Yet the question here is; 'what do we save?' Always money and to be very precise banknotes or it's virtual counterparts. At that early days it was mostly the use of a savings box which one would one day break to see how much he has at hand.
The further expansion or should I say exposure to technology brought in the inception of bank accounts in a more accessible manner. It has NOW become the modernized pattern to carry out savings. In the midst of this, can one actually be running a loss or spending in actuality. What brought about this article is when my brother called me to say he was not allowed to pull funds from his account because the bank said he hasn't made withdrawal from that account for a year now. I was a little surprised and partially angry. He was told to carry out some procedures before he could have access to his funds (if actually money in the bank or bank notes are ours). He needed my help to access to some documents for verifications. Well I got to him a little late and he couldn't meet up that day and felt I was the reason his money was still hanging in there.
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It's one of those brotherly arguments, nevertheless I had to expand much to him who actually had to be blamed; it's the bank. Why frost an account that money is consistently pouring in and you guys are using it for your benefits. I asked him that question? 'How long is one year? Or were they expecting you dead? It's personally one of the challenges I have with service rendering from a local bank. I brought money for you to keep and now have to pass through protocols to access it. It's all because of this that blockchain, crypto and web3 sprang up. They still fight against this new tech on a daily basis to retain their positions yet they are not much concerned about customer service improvement.
That said, the truth is, for a year now he has been spending money on the bank. After all they are not going to pay him any interest not to even talk of the charges for SMS maintenance and the rest of the likes. Inasmuch as I don't normally like the way banks behave, I must say they are one smart institution or maybe cunning; suit yourself. How they manage to have much out of nothing is a must learn tactics. They set up a system and customers bring in funds for them to toggle entirely for their benefit; how about that. The funds he had in that account is not mouth watery to say, nevertheless, we must admit that banks will make the most of every dime in their custody. They have diverse ways to duplicate your savings. You are satisfied with digit that reflect in your account, they are satisfied with interest rates they loan your money for.
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Maybe he should have put it in a saving box. Very funny, you know he would have gotten rid of the entire stress. It would only cover for that and nothing else. We know paper notes are depreciating assets. We have seen the value of currency against goods and services fading drastically. This means every such savings is a spending on inflation. Maybe in some part of the country this inflationary changes are low, it is hyper over here with goods and services going 4x against currency. We've experience such challenges several times while trying to budget to purchase business appliances. Should we now stop saving? I never said so, I am just exposing you to knowledge so you know how to walk your financial patterns more accurately.
This is why the rich fellas always side with precious metals. Over the years, we have seen them continue to out run paper notes and this process seems to be normal. For instance, the market liquidation of last week did not have much effect on gold. In short, it was the needed safe haven when many assets were crumbling. Spending much on paper notes in the name of savings is of no important value when looking at long term returns. What can one really do, especially those who are in the middle class? Secured investment always seems to be out of reach as ultimately investors make such their well guarded Honeywell. How many of the TOP guys hold this notes? They know they'll have to spend in the process so they avoid and evade.
To conclude, let me add, most of what we assume savings are actually loss on a long term. We have to consider depreciating values for paper notes. Secondly, the banking system seems not to consider this and compensate customers with better return on investment. Why do I use paper notes or government currencies as the case maybe? The answer remains because it's generally accepted by all. Exception for this who would need them, other asset class are worth the entire effort.
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