Question

can there be any difficult and disadvantages in keeping money in a bank think and write

Answer 1

By saving you train yourself in the discipline of accumulating (and not spending) your wealth. This runs counter to every opportunity for gratification that society offers. That discipline is one of a very few positive things that you can develop in your life to assure stability and independence. It carries forward into your life to weigh every consumption decision.If you save toward an accumulation goal, you eventually come to realize how incredibly difficult and time-consuming that accumulation process is. When you have completed that accumulation and face the decision to spend (which is, after all, why you accumulated), your first thought must be that when you spend your savings you have less than nothing. You no longer have your wealth, but you have a thing. That thing will incur additional cost to maintain or use - what good is a TV without purchasing content? A car without oil? A home without water? So you are actually less wealthy than when you began, and you incur new obligations which you may or may not feel inclined to meet.Money in the bank, then, reflects freedom from attachment and obligation. That degree of freedom only increases with your savings and creates the potential to enable things you can’t imagine even as you save.But there are many liabilities.As many have pointed out, your spending power will erode from inflation while you accumulate it. The account itself may be costly, with monthly or annual fees and minimums that eradicate any interest benefit. You must research the bank that you save at to ensure its stability in time of chaos so you don’t simply lose all your savings.Saving money may be exactly the wrong thing to do. In a practical sense, if you carry any debt then you should be working to discharge that debt before saving money. (This is not always possible.) That debt is far more costly than any benefit you receive from savings. Yes, there are obstacles. But if you carry a credit card balance at usurious rates it makes little sense in most cases to set that potential payment money aside in a savings account. Both are investments clamoring for your dollar/Euro/ringgit/renminbi/rupee. You must carefully consider the relative benefit from each kind of investment.Of course you should create a buffer against disaster. But you must do it in a way that makes good financial sense.Once in the bank, your money is no longer yours - it is the bank’s money, which it may or may not elect to return to you at your demand. Every account agreement gives the bank the right to limit your withdrawal at any time, and for any reason. Even if you have “deposit insurance” on your money, you may lose access to it for some considerable time if your bank becomes insolvent, during the time it is absorbed into another institution. You may lose interest payments during that transition, or incur additional http://costs.So the practice of saving, once developed, is a lifelong benefit. But savings must be created in the context of an overall financial plan which includes all of your debts and obligations. You must take reasonable care and judgment when selecting your savings institution.But savings toward investment? That’s the beginning of a life-long achievement, of enabling and developing yourself as an independent, thinking being rather than as a replaceable attachment to a miserable jobs