THE IMPORTANCE OF SAVING IN DOLLARS – PART 5
People are accustomed to saving their money using their own local currency. This is understandable as it is the classic method where you can take a portion of what is left of your salary or daily earnings and then accumulate it in a savings account or in a beautiful piggy bank.
The hope of growing one’s money, if one speaks of interest paid by banks, is really quite slight. Even when talking about a credit union, the amount is also quite small. In addition to that in the latter option, funds are usually withheld, and you can only withdraw them when you really have a specific objective in which to invest the value saved: for example for purchasing a house, paying for education or to pay off some significant economic debt.
Therefore, saving money in a savings account is not as effective as the US dollar usually is, beginning with the fact that it is money that will always be available if you should need it. There will always be the sweet temptation to use it, just as when a child does not resist the temptation to open up his piggy bank to go and buy the toy he just saw on television.
What Guarantees Does the Dollar Offer Then?
What happens with the dollar, in the first place, is that it is a currency that you must buy, transforming your own money into something that will not be as accessible as the amounts in your bank account. Do you remember the idea where having a dollar bill at hand was like possessing a piece of gold?
That is what it is all about. You buy a type of currency that besides fluctuating in the national and international markets, although will not be able to use immediately. Just as you would with a gold ring: you would have to go and sell it first. The value is then converted into a resource that will not leave you open to the temptation of using it.
For this reason, among the other advantages offered by the US dollar are the following:
- You can be more patient when saving.
- “Interest” is not banking, but increases in accordance with the performance of the national economy.
- It is a much more progressive type of savings that teaches you to be disciplined with respect to the buying process.
- While the value of the currency sometimes goes down, you can buy at a time when its value is lower.
- The more dollars you buy, the greater your profit will be when selling them.
- In the event that the cost of the USD falls in relation to the economy of your country, you can have as a point of support the option of selling them to another currency that serves as a bridge.
- However, in the long run, and above all, it is a type of currency and savings that tends to be cumulative.
This last point refers to the fact that the more you save dollars, the more constant you become in saving them while at the same time analyzing how much you have every time you multiply your number of dollars by its value in your current country.