Economy

Beware of these 3 risks with €50,000 in your checking account or under the mattress

In the age of internet and social media, there are still those who invest their savings in cash, like c/c, or worse still prefer mattress, including home safes.

So it is not uncommon to encounter figures of a certain symmetry who are left standing. Let’s think, for example, of a hypothetical amount of 50 thousand euros, even if the conclusions we will draw are valid for each of those who have 30, 80 thousand or more.

So, beware of these 3 risks with €50,000 in your checking account or under the mattress.

Inflation, the most dangerous danger

The first element to consider is the current rise in the cost of living, which is the most subtle component of spending that we tend to neglect regularly. The reason is that it is a cost that has not already been paid, such as those of administration and stamp duty.

However, an example can make its impact understandable and make savers change their minds.

In the ’80s and ’90s, bonds and long-term credit card plans offered staggering rates. for example The thirty-year bond issued on November 1, 1993 (expiring in about 27 months) has a total coupon of 9%, which is unimaginable today. This happened because in those years inflation was very high and it was necessary to ensure the purchasing power of the invested money. Then inflation waned and these savers found income in their hands for many years.

It will be enough to think in the opposite direction to understand the damage done to him when the scenario is reversed. That is, holding savings without interest as the cost of living rises: a disaster. In fact, this is the amount of 10,000 euros on c / co under the rank from 2000 to today.

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Always the temptation to pay in cash

Those who usually manage their savings with cash may also be tempted to pay with cash.

That is, the tendency to liquidate between savings and payments, as well as to income in general, can be more tangential in these cases. However, as we have already explained, Pay attention to the use of criticism and related administrative penalties.

So, beware of these 3 risks of having 50,000 euros in your checking account or under the rank

Finally, let’s not forget about the huge theft risks that occur in the summer when leaving money and valuables at home. Often even well-armored and/or hidden safes do not manage to preserve personal wealth.

Criminal professionals are well trained to break home chests as well. Moreover, in the summer, if the tenants are abroad for holidays, they will also have more time.

It is not necessary to specify that the damage suffered in this case is equal to 100% of the individual’s savings. With two other aggravating factors of punishment: first, the insult associated with the costs incurred to repair all the burglaries that were exposed. Second, the psychological trauma of feeling vulnerable and violated in the holiest of places: private house.

Thelma Binder

"Explorer. Devoted travel specialist. Web expert. Organizer. Social media geek. Coffee enthusiast. Extreme troublemaker. Food trailblazer. Total bacon buff."

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