Take care of your savings
If you save and invest wisely you can attain attractive appreciation of your savings and improve your current standard of living. You can also protect your finances against negative effects of inflation.
Effects of inflation on your savings
Over the process of time inflation is a threat to the real value of your savings. When money and savings do not appreciate they can lose their value considerably, usually because of the effects and influence of inflation. For the money we have we can buy less and less from year to year and the living costs become more expensive. If you do not take that fact into account it can significantly reduce your current standard of living in the future.
This illustrative example shows the influence of 2 % year-on-year inflation on 10,000 EUR over time.
The advantage of our savings products is the possibility to invest and increase the value of your savings, even in small amounts, so you do not need to affect your current standard of living. With regular savings, you are gradually building financial independence and taking advantage of several benefits of regular saving such as, for example, compound interest and cost averaging1. The sooner you start saving, the more you can capitalize on the potential that saving has to increase the value of your finances.
Tatra banka has a wide range of solutions for you, from term deposit accounts to investment savings products that offer higher yield potential.
1 Cost averaging: means buying of shares of stock at various price levels. If the share price is dropping, you can buy more shares with your regular amount of savings. You benefit when the price comes back to its previous value. At the same time, if the price is too high, you will buy fewer shares. This method increases the overall effectiveness of your saving and its final outcome.
Plan your investments in terms of time
Plan the time periods for which you can invest your available finances. Spread your savings into several products to address short-term, mid-term and long-term investment targets. In making your decisions, also consider what comfortable level of risk you are willing to accept as the trade-off for the chance to gain higher yields.
To maintain your comfortable life in the future it is important not to spend all your money and instead put aside a portion of your income and invest advantageously. The money you put aside will help you when you might have no income or if you need to spend more than you are earning.