Since the financial crash people don’t have the same level of trust in banks that they used to. They’re increasingly looking for places outside the bank to store their cash so they can be sure that it’s safe. That’s a bit drastic and it’s not likely that the bank will lose all of your cash because your savings are insured even if they go under. However, the bank isn’t always the best place to keep your money for other reasons.
If inflation is higher than the rate of interest that you’re getting, your money is actually losing value in real terms. That means that, although the numbers are going up, the amount of goods and service you can buy with the money is going down. If you’re worried about that and you want to secure your cash, try these alternatives.
A very popular way of storing cash without having to worry about the impact of inflation is investing. But if you put your money into the stock market, there is quite a high risk of losing it. When you’re looking for somewhere you can invest your cash and be sure that it’s safe, buy silver and gold with it instead. There are always going to be price fluctuations but they’re relatively small and precious metals are always going to be worth good money. The old cliche, the price of gold goes up in a crisis does usually ring true because it’s a far safer investment than stocks and when the stock market crashes, lots of people sell off their investments and put their money into precious metals instead.
Putting your cash into a business is a good way to keep it safe and watch it grow, but only if you choose wisely. The percentage of businesses that make it is fairly small and if you put all of your eggs in one basket, you might lose it all. Try to go for safe options rather than startups that are trying to launch ambitious new products. Even if it seems like something that will take off, you just don’t know what could happen. When you’re investing in business, just use a portion of your savings. It’s far too risky to put all of your money into a business if you don’t know how well it’s going to do.
Under The Mattress
This sounds like it’s a bit of a silly suggestion but if you’re really worried about putting your cash in the bank and you aren’t sure about making any risky investments, you can just keep it in physical cash form. Maybe under the mattress isn’t the best thing because you’ll lose everything if you get burgled. Trying to claim a huge sum of cash is going to invite questions from the insurance company and you’ll struggle to get it back. It’s probably better to get yourself a good quality safe to put your cash into.
The banks aren’t likely to lose your cash anytime soon but storing it in there isn’t always the best thing if you want it to be safe.