Keep the money at home? You lose 13% per year!

Keep the money at home: in the nightstand / under the bed / in the safe or secret places in the book? Lose at least 13% per year!

What is happening with our money when they are not used? They lose their value. This problem consists of two components:

Inflation + Loss of profit = Loss money

1) Inflation in Russia amounted to 6.1% in 2011. According to the results of 2012 promises to inflation at 7%. I'm not talking about "personal inflation", which for each individual.

Personal inflation - in fact, the increase in prices of products / services that you are buying it. For example, you buy only gasoline, but do not buy food. In this case, inflation will be your% price increase is gasoline without affecting other products. In this case 5.59%, if you go by 92m (based on the price of gasoline in the national average). If you buy not only gasoline, your personal inflation rate will consist of a rise in prices of all goods that fall into your basket. And does not the fact that it will be equal to the national average.

In inflation have both positive and negative aspects of the country's economy. For us, each percent of inflation means that money we can buy at a percentage less benefits and joys. In our case - by 6.1% less than the joys or vkusnyashek:

By the way! And you have to work the salary is indexed in line with inflation? If not - then this means that every year you get less and less ...

2) Loss of profits more abstract. It means that each unit of time you have a choice:

According to "Wikipedia" Loss of profit - is unrealized revenue opportunities, profits due to bad choice, a method of action.

So, the business loss of profit equated to direct losses. Why should we think otherwise?

How do we lose? The rate for the deposits in banks is from 6.5% to 12% / annum. That the amount of profit that we are losing, just store money at home.

Take an average rate of 7%. What happens at the output?

There is no end of grief. Thanks to our inactivity we are losing at least 13% per year of the amount of accumulated savings carefully.

Output: "Keep your money in a savings bank» ©. Or invest. Put the money at least for a contribution that will cover% inflation. In this case, your loss will already be equal to 0%. repay loans or try other ways to invest (we'll talk about them later). Every% reclaimed from inflation or our inaction - is your investment in future wealth.

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About the author. Eighteen months ago, I learned about a lack of our education system. We simply do not learn to handle money. School, high school were in this matter is a bad counselor. Definitely no. Parents, too, can be a little something to teach - they lived at a different economic system. So I took the decision of a question of personal education in their own hands. Currently, I have one and a half years studying personal finance: from study specialized business literature on the topic, "Finance company" finishing books and Kiyosaki Russian authors.

Now I began to test their knowledge in practice. I promise you in the pages of "LayfHakera" to share with the readers of lessons learned, observations and most relevant extracts from theory. I promise that the article will be vital and comprehensible.

If you do not agree with some of my thoughts or if you have ideas to improve existing ones, as well as Topics of new articles, or if you want to get answers to financial questions leave comments to articles. discuss)

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upd. During a panel discussion were born new ideas how to calculate this question. The point is that now we are also mindful of the fact that the resulting investment money also depreciate on the inflation rate. To more accurately calculate all done file in excel. Welcome! Your thoughts will be very valuable!)

As for the topic of this article is subject to invest the money at 7% / annum with monthly capitalization and inflation of 6.1% per annum (as stated in the conditions of the article) we will lose 7% if we do not invest the money from under the mattress.