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It’s Only a Dollar…right?

Posted on the 14 July 2017 by Smallivy
It’s only a Dollar…right?Personal Finance Simply Understood

With interest rates staying at all time lows,It’s only a Dollar…right? we may be tempted to look at saving as a no-win situation. Monies deposited just aren't accumulating any interest and with an annual inflation rate around 2%, aren't we actually losing money on our savings?

The short answer is yes, but a more prudent answer lies with the interest rate we pay on credit cards and loans. If we have no savings at all (or very little), an unexpected expense like a refrigerator breaking down ends up on our credit card. We end up paying interest on a credit card balance, and add yet another bill (or a higher bill) to our monthly cycle.

This is where we can win simply by having a little bit of emergency savings set aside. Saving just one dollar each day would accumulate $365.00 each year and over $3,000 in ten years. That is if we don't use it for...

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