Saving money is better than not saving at all, but letting it sit in a bank without investing it is not optimal because of inflation and the fact that the bank uses your money to make a profit.
During the Great Depression, people were unable to withdraw their money from banks due to a bank run and the subsequent economic crash.
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Hi! π Nice to meet you all. My name is Giovanni, I'm 15 years old and live in Italy. I am a big dreamer and I wish to change the world. My mission is to help as many people as possible embark on the journey of leveling π in life.
Change your mindset about money, focus on increasing your income, save and invest wisely, and educate yourself.
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Similar ideas to π° Maximize Your Money
Banks loan money they don't have. Most hold a limited reserve to serve the few who decide to make redraws. When the majority decides to liquidate their bank accounts we have what is called a bank run.
In order to protect the banks, central banks were created to provide a gu...
Banks donβt like to give away their money. That mindset is reflected in the interest rates of checking and savings accounts of 0,5% and 0.9% avg. annual interest respectively.
When you deposit your money in the bank, the bank turns around and invests that money at 7% a year or more. ...
On 29th October 1929, the infamous crash of Wall Street happened, where 30 million dollars were lost in a week, leading to customers rushing to withdraw their money, known as the βbank runβ.
The entire world felt the capitalistic fall and realized that a boom leads to a bust, even...
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