If you live in Brazil, you may have noticed that the prices of products and services keep rising. Just go to the grocery store or pay the house bills to realize that inflation is not giving way lately.
Because of this, the savings account, which no longer had a high income, was further impaired. It still yields, but is below the percentage of inflation. With this, the purchasing power is completely impaired and any amount put into the savings today will have less and less buying power with the passage of time.
But do not worry! Today’s post will show you some alternatives so you do not get lost and explain rightly why saving is not a good choice for 2016. Keep up!
1. One eye on savings account, another on inflation
The tip is simple: whenever the percentage of inflation is higher than the percentage of savings, your money spent on savings account will become less valuable over time. Therefore, with inflation exaggerated – as in this moment – look for alternatives that present a better yield.
2. Direct Treasury is a good alternative
Investing in government securities through direct treasury is an easy-to-access option for anyone. If you do not want to risk falling below inflation, there are alternatives. Some government bonds are indexed to the IPCA – that is, the inflation index – which means they will always pay you at least the amount of inflation.
Other advantages are:
• Low risk: because it is an application guaranteed by the National Treasury, it has an extremely low risk. That’s because the government will never fail to pay for itself.
• Low initial investment: you can start with just $ 30.
• High profitability: Treasuries can yield much more than savings and most fixed income applications.
3. CBD, LCI and LCA
These are investments that can be contracted directly in the vast majority of banks and have a great advantage: they are exempt from income tax.
The point against, unfortunately, is that banks charge administration fees. These rates are deducted from the total amount applied, and not only interest. This makes this type of application not advantageous for small investments.
If you have a few tens of thousands to invest – like, say, $ 30,000 – these applications can be quite interesting. In this case, the interest generated will be higher than the administration fee.
4. Enlist the help of financial control applications
Some people end up opting for the savings account simply not to leave the money in the checking account. This even makes sense, since it avoids unplanned expenses. On the other hand, there are more efficient ways to control the inflow and outflow of money, as well as focus investment data and accounts payable.
There are already market applications where all your expenses are divided into categories and you can clearly see where your money is going. In addition, one of the great advantages is the ease of use.
Did you see? Savings account is not the only option to control spending and make investments. As much as the crisis season seems to make things difficult for those who are willing to invest, there are always worthwhile alternatives. The key piece in those hours is the information!