Keeping real estate in your checking account could cost you dearly in the long run. Some investment tools can bring in unexpected money.
The money in the current account, which has always been synonymous with savings, could run into a rather nebulous future. In fact, starting from 2022, the rules on the permanence of money in the account will become more stringent, both due to the desire of the banks not to keep too much money in stock, both for the deleterious effects of immovable sums held for a long time. A first squeeze has already arrived, with some credit institutions ready to close accounts that are too high and with almost unused amounts on investment channels. This is because money management, in a period of interest rates does not offer large returns, represents more of a cost than a profit.
The goal is to encourage customers to use their money rather than keep it in stock, producing a burden both for those who manage the account and for the account holders themselves. This is for a very simple reason: the current account is presented as a useful tool for payment, while it does not in itself offer investment opportunities, as happens for example with postal vouchers. In order to avoid the costs of stamp duty, the money in the account must not exceed the limit of 5 thousand euros. In practice, sufficient money must be kept on this instrument to cover the expenses, without extending the balance too much.
Money on the checking account, how to avoid the mistake of the stock
The money left in storage without investment would end up causing a stagnation effect, detrimental to any economy. The problem, very often, is that the holders of the money do not know how to use it, running into a fairly common mistake. Yes, because leaving excessive liquidity on the account will lead, even without big announcements, to a progressive impoverishment. Both for operating expenses and for inflation, which increases in the event of a weakening of purchasing power. The beauty is that avoiding similar situations is easier than you think. In fact, accumulating capital over a variable period of time is also possible by allocating extremely low sums, even if they were 50 euros.
In this case, we speak of the so-called “opportunity cost”. The tendency to save is typical of every taxpayer, who accumulates sums of money progressively in order to create a pool of liquidity useful for future needs. Even in this case, however, a common mistake is made. That is to keep the sums in question on their own account, accumulating for example 100 or 200 euros per month without, however, making a profit. Yet, investing the same amounts in instruments capable of yielding attractive percentages, would allow extremely important figures to be obtained in the long run. If you want to opt for the equity markets, ETFs are a guarantee, given that in the last decade they have returned as much as 15%. Basically it is always a question of balance between immediate needs and thoughts for the future.
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