The People

Such a process often leads to the formation of bubbles. No man can see off if and when it comes to a possibly violent back setter, but it should never be with a sound financial planning Build up your assets on only one column. A solid risk management also prohibits this. Is there an alternative to invest? For this reason, the question arises: where the money? Or at least where parts of the money? An alternative to investing in the original sense is consumption. Prices of goods are relatively small in diameter (inflation) and who wants to see his money on the day cash account not slowly devalued, takes it in hand and buy.

But is this really productive? After all, you have created a financial plan and set financial goals. “One should differentiate in this case: are to succeed spending on things that you later planned and simply prefer this purchase speaks from financial and betriebswirtschaftlicher” sight nothing against consumption. Are you, however, led by crafty marketing experts to think that you need to make a purchase though it does planning, you should take distance and think. Is this purchase (with consideration to your financial objectives)? Do not forget that you have the money in the future no longer available that should could get interest back and achieve adequate returns. Expire not the credit story extremists”go even so far as consumption, a wise strategy is that a purchase on credit talking you the people in this environment. By keeping interest rates low, you get nearly the money”. Please bear in mind that low interest rates also be accompanied by generally low inflation. With inflation by 1% and 4% credit interest the effective cost of the credit exceed 3% (not to be confused with effective interest rate), since the money to repay in the future which is around 1% less value every year.

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