The money on the bill current can increase in value or decrease, depending on the use made of it. Regardless, there are many taxes that make our savings “thin” if they remain “inactive” for too long.
How accounts are “taxed”
Many accumulate money and leave it there because, in doubt, it is easier to do nothing but stamp duty, account management costs and inflation act like hawks on savings halving the (nominal and actual) value of the savings. The precise number of years is largely a function of the inflation rate: in practice, considering taxes and commissions, with an average annual cost of living of 3%, about 15 years could be enough to halve them, both in terms of actual expenses and loss of purchasing power.
How much 10 thousand euros are worth on the account
Let’s take 10 thousand euros as an example: how much is this money deposited in the account or under the mattress worth 20 years ago? As reported by bag projections, the way to go shouldn’t be tough especially when inflation it is as low as it was in 2020 but, in these cases, fixed income yields are also low. At this point it is necessary to understand what the future average annual rate of inflation is and, to this, the incidence of bank costs must be added. In general, the latter weigh (in% terms) less and less as the savings managed grow. The second step is to identify a product that allows you to cover that series of costs: for small capital, a single product could be enough for the purpose and avoid the trap of commissions on multiple investment products.
When to invest
Those who want to “grow” their assets, on the other hand, equity investment is practically almost mandatory but three fundamental factors are needed: propensity to risk, adequate investment timeframe and excellent planning, perhaps aided by trusted industry experts. In this third case, however, the final outcome is the one that in theory opens up to any scenario: growth, conservation and loss of the starting capital. In any case, this is the only path that allows you to double the starting capital or in any case allow even “small” increases of 10%, 20% or 30%. It is of fundamental importance to operate with judgment, that is, with targeted planning and attention to all details as well as having the patience to allow time to take its course. You don’t have to be careful, just a little patience.