The
investment guru, Robert Kiyosaki, thinks so. When bank savings rate is equal to
the inflation rate or below then Kiyosaki is correct – savers are losers!
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https://www.hustlermoneyblog.com
The latest savings rate
by a major bank in Malaysia is as follows:
|
Savings Account
(Balance RM)
|
Interest Rate
(% p.a.)
|
|
Up to 50,000
|
0.25
|
|
Up to 100,000
|
0.30
|
|
Up to 150,000
|
0.35
|
|
Up to 200,000
|
0.40
|
For
Maybank it is flat 0.25% p.a. for all banks. Fixed deposit rates range from
1.5%
(1 month) to 2.10% (60 months). Then banks lend above 5% p.a. to make a 3% margin (or more) for covering costs and other incidentals (including profit!). So are consumers “sacrificing” for banks to make money? And should we save?
(1 month) to 2.10% (60 months). Then banks lend above 5% p.a. to make a 3% margin (or more) for covering costs and other incidentals (including profit!). So are consumers “sacrificing” for banks to make money? And should we save?
There are five reasons
why savings with a plan in mind is still a good strategy:
i) Rainy day
When you are retrenched in October, you need savings to
survive for at least three months. Otherwise, you may lose your car, home and
whatever else.
ii) Property investment
Savings as a way of accumulating wealth is not a great
strategy (Robert Kiyosaki). But savings to buy a property that has a yield that
covers the loan instalment is a brilliant step.
iii) Get out of debt
Debt incurred in looking “cool” with your friends is a
killer. But repayment of your house purchase is not a lifestyle debt. It is
paying for your own house, otherwise you are paying rent (or the loan
repayment) to your landlord/owner.
iv) Saving for a new car
Saving up for your next car and paying partly in cash could
be necessary for your work or other reasons. Some jobs require a car and it
could be useful to borrow from your parents. Regular instalments to your
parents will help both parties.
v) Saving for a holiday
Instead of taking credit or deferred plan for your next
holiday, it may be better to save up and then go for that holiday. But with
quarantine it is only local ones that you could plan!
Savers are not losers
if it is purpose-driven and, on the corollary, a compounding interest strategy alone
may not be that great to accumulate wealth.
Reference:
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