LIC online plan

Don’t keep too much money in savings accounts I want to talk about 2 problems (one small and one big) associated with keeping too much money in your bank account today. You must be thinking, how can keeping money in my account be a problem? After all, more money into account is a good thing –  RIGHT? Let’s see Problem #1 (small problem) – Negative Real Return Let’s talk about the small issue first. The money in your savings bank account earns a small interest of just 3.5% per year (in most of cases).  Inflation is around 7-8% on average and if you consider that, you are actually earning a negative real return (real return = return – taxes – inflation). Problem #2 (Big problem) – That excess money gets SPENT easily Our mind works in a very different manner when we have money lying in front of us. Supply creates its own demand is one of the principles of economics and very much applicable to money. If you have money in a savings account, you ca...