Saving in Dollars or Gold?

Most of us do know that savings are important. But there is always a question in what should you save? Especially at the time when Gold is breaking lower level that was there for 6 years. There are three rules to keep in mind when arranging your savings efficiently.

Money placed under the mattress loses value.

When you put money aside, you have to understand that your funds are losing the value with time or, in other words, the amount of apples you could buy in 2005 for 1,000 USD will be larger than the number of apples you can get in 2014 for the same money. Think about the pricing for most of the items you need like gasoline, tobacco, groceries, clothes and so on. As a result of items becoming more expensive over time, you will have to save for a longer period, unless you are able to secure your funds from the increase in prices.

Common mistake: People think that placing funds on the savings account would help them to protect from the increase in the prices. This is generally not true, since the rate of real inflation is quite above the interest rates offered at savings accounts.

Savings shouldn’t be easily accessible.

Many people fail to save efficiently due to the psychological challenges.  Usually people try to put money aside and they have quite some success before they reach a certain reasonable amount. Saving can be relatively easy when you want to reach 1,000 or 5,000 dollars, but when you target is quite above this number, you will find it challenging to avoid spending money when you actually have them. While many people will be successful savings funds, they will most probably reach their target not so fast, because they would occasionally update their iPhone, get a new car or simply items they don’t need, but can just afford from savings. Consequently, saving is extra efficient went the funds put aside are not easily reachable.

Common mistake: Most of the people would think that a separate bank account would keep them away from spending. I have seen numerous people transferring their savings account funds to their current account by almost the end of each month.

Savings must be secured.

It is important to understand that the main aim of savings is to actually have the money in the end. While numerous investment programs out there can attract you, it is wise to note that a large degree of return usually comes with a large degree of risk. Considering the .com bubble, the housing bubble and just a numerous amount of scams on the market of investment product, it is significant to invest in the item that has been around for quite some time.

Common mistake: People try to invest in the products they “think they understand” or don’t understand at all and assume that one day they get lucky and it pays of.

Usually this people end up blowing up their investment and the savings are gone.

Here is the solution!

Keep your savings in gold! In the past most of the currencies were backed up by a certain amount of gold reserves and while it is not a common practice nowadays, you are able to buy gold and make your own small vault. Savings in gold would generally appreciate in value overtime, so you will definitely experience the higher rise of your savings compared to the growth of the prices. Also, gold is not accepted in the local stores, so once you decide to get that new device from Apple, the whole process of turning your gold reserves into cash would probably keep you away from making not-so-wise purchases. Finally, gold has been around for ages, hence it makes it a save heaven for keeping your funds. Unlike companies (stocks) and governments (bonds), gold has been for over 10,000 years and it will definitely stay here in the future.

There are numerous ways of turning your dollar into gold, ranging from psychically buying  gold coins, bullions, internet certificates or opening a gold account with one of the retail forex brokers. Converting your funds into gold and enjoying a safety heaven of potential growth.

While gold is certainly one of the most superior methods of arranging your savings, we would still recommend you to keep at least 20% of your savings on a regular savings account, so you don’t have to get read of your metal assets every time you face a little financial difficulty.

– This article was contributed by

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