If you have some savings and want to make a profit on your money, you will likely look a little lost right now. Which bank pays more interest? Who has the best-fixed term? Those questions perhaps made sense a few years ago, when interest rates were a little higher. But things have changed. And it does not seem that we will return to the before in a long time.
If you want to get your money back, you have to change your mindset. Going from bank to bank to see who pays the most will not help you much. Because basically, the banks don’t need or want the money anymore. A customer with € 100,000 insight is a problem for them. The amount of money does not matter. They no longer need liquidity.
It may take a bit to understand, but the banks lose money with you if you have the money in checking account. The Euribor is in negative, -0.28% nothing less, and it seems that it will continue like this long enough, according to the words of the leaders of the ECB. It is not something that is in the hands of the commercial policies of the banks.
They won’t fight for your money for much money you have. And if someone gives a little more than the others, it is only a hook that will last a short time. Until a while ago, it was the commercial banks themselves, which we’re comfortable with, not worrying much more about seeing which bank pays the most. They liked that clients didn’t have much financial culture.
Now, however, they start to worry a little more about customers having more knowledge so they can invest, which is what they can earn some money with.
The reality is that you have to invest your savings. It doesn’t matter how much you start with, but you have to invest. It is the only way that you maintain the purchasing power of your money year after year and that you get a little return on your money.
The problem is that not everyone is prepared. Not that you are less intelligent than others. Nothing to see Anyone can earn good money by investing their money. You don’t have to be a genius. What is really important is how you behave and how you make your decisions about money-related issues.
It is not easy, simply because our brain, although it has evolved markedly from our ancestors, we are still programmed for the threats we faced when we lived in the cave. Do not laugh. The big problem of our bad financial decisions depends not so much on our knowledge and experience, but on how our mind is programmed and the shortcuts it takes, to give quick responses to risk situations.
That is why, although bank commercials strive to move towards risky investments, many of us are unable to maintain the proper attitude to do well. Our behavior hurts us more than the investments we decided to make. But also. And that is why the super-sales of many commercial banks, are still guaranteed long-term funds, which guarantee to keep the principal invested, but assure you loss of purchasing power.
If this is your case, well. I would tell you that maybe you need independent financial advice. And that is worth money. It shouldn’t surprise us. Any professional specialized in something charges generous fees. Why not a financial advisor? Free financial advice is never really at zero cost.
What do you say to me Are you one of those who invest or who continue to lose money?