Quote:
Originally Posted by Blueblaze
The reason people spend money during an inflation is because if you hold your money until good times arrive, it'll just be worth less. That's not a good thing. Savings and investment is what underpins a healthy economy.
|
Higher savings interest rates usually come with inflation, which offsets much of the rising costs.
These days my wife and I have most of our funds in tax free, inflation tracking government cash bonds, and they are doing well for us.
Problem is, many have borrowed to the hilt during good times, and never left themselves any leeway for a downtrend.
I am no fiscal genius, but I learnt not to borrow more than I could pay back, even with substantial interest rise.