The records are now monthly. In this case, unfortunately, in the negative. 1,672 billion euros. This is what the liquidity of Italians now amounts to. As mentioned, growing month over month. The reasons? Fear and uncertainty about the work and economic situation. On which the media speculate ignobly, one might say. And we stop here. This is the sad truth. Italians save and do not spend, nor invest. Because they are afraid. And fear is a dangerous, self-sustaining thing. Very easy to raise, very difficult to send away. And where do the Italians leave their money? On the checking account, of course. And how much does it make him? Nothing, indeed. In 20 years, savings have halved by putting money on this tool. That’s right. And now we will see how and why.
In the medium and long term the choice of the current account is ineffective. What is the effect that makes savings non-interest bearing in the long term? But inflation, as we have mentioned a myriad of times on these pages. Recently also in this article. And why? Because inflation decreases purchasing power from year to year. Simplified and truthful example. The inflationary average of the last 20 years was 1.7%. If we had had 10,000 euros in a current account, without investing it for 20 years, do you know what those 10,000 euros would have become today? 7,138 euros, about 30% less.
Wait. It’s not over. Management costs must be added to this. Which today are an average of 146 euros per year (the accounts are HELP, the Italian Banking Association). At an average of 100 euros a year over the last 20 years, let’s take away another 2,000 from the first 10,000 and we have dropped to 5,426.
In 20 years, savings have halved by putting money on this tool
But we are bad guys. And we want to put the costs of non-investment on top of it. Which for shares was an average of + 5.20%. While for bonds it was + 2% per annum. All net of inflation, of course. In short, if we want to be very good, in 20 years the savings have halved by putting money on this tool. Today, unfortunately, the current account not only no longer yields anything. But it also makes you lose, in the long run.
And you know what the worst is? That leaving money on an unproductive instrument, such as a checking account, also has another effect. It nullifies the very sense of saving. That would be giving up using resources today to find them in the future, increased. Other than increase, as we have seen.
Are there any solutions? Only one. Invest your unnecessary savings. Don’t get caught up in fear and therefore emotionality. And plan, well and in time, how to invest to get the most out of your savings. By balancing the short, medium and long term goals.
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