Sunday, 10 December 2017

The other side of Fixed Deposit(FD)


Clarification:
I am just trying to flip the coin, to discuss about the other side of FD in this article. This article is full with my personal opinion, so feel free to close this article whenever you feel sicked and wanted to vomit, please bear in mind that I am not pointing you with a gun to force you finish reading it.
For all these years,
because of a monster which is called as "Inflation",
most of people know that if they put their money in FD,
as time goes by, the value of their money will only become lesser.

 However,
even they knew about it,
they still putting most of their money in FD.

 It is like someone is taking a bath in a hot pot which keep getting hotter and hotter,
even though now the temperature is still okay,
but they know that later it will become too hot until death,
however they just don't want to leave the hot pot.

 Since the topics about money devaluation caused by inflation  are often talked about,
I believe everyone are getting tired of it,
so I will not talk about inflation too much.

 Now the thing is,
everyone think that share investment is risky, might lose money,
so they rather be safe and put money in FD for annual interest between 4% to 5%.

 Some people think that the price of property is too high,
too dangerous to buy a house,
so they rather choose FD.

 Some people think that doing business is dangerous,
so they think is safer to put money in FD.

 The question is,
by putting money in FD,
are you truly avoiding those things mentioned above?

 Do you know that........
the annual interest of 4%-5% that the bank promised to you,
how did the bank earn it?
Did the bank create it out of thin air?

 Of course not.

 The bank lend your money out,
earn the difference between interests,
then only the bank has money to pay you FD interest.

 You said you are not doing the "dangerous" share investment,
but the bank is lending out your money through SMF for other people to invest at share market which you think is dangerous!

 You said you don't want to buy house because the property price is too high,
but the bank is lending out your money through housing loan for other people to buy the house that you think the price is too high!

 You said doing business is risky, so is safer to put money in FD,
but the bank is lending out your money through business loan for other people to do business!

 At the end,
your money is still doing the things that you are trying to avoid.

 Of course,
I am not opposing you for putting money at bank,
if you read my previous article about Money Management Jar System,
I mentioned that I saved 10% of my income,
only 10% though, not much.

 We should be grateful that our banks still offering 4%-5% high annual FD interest.
Some banks in other countries are offering very very very low FD interest,
the thing is are we going to wait until our FD interest drop until around 1%,
only start to look for investment?

 Many people think that we should be stable and down to earth, work hard and save money,
don't day dream about getting rich through investment.
The thing is,
Everyday only thinking about working hard and save money,
relying on the very little interest, should be able to have enough money to retire.....
Isn't this more sounded like a day dream?
Isn't this more not stable and more not down to earth?

 Many people think that those people who do investment are not producing, are lazy pig!
The thing is,
by letting your money sleeping in the bank, every year earn a little bit interest for you....
Isn't your money not producing？
Isn't your money is lazier pig?

 Majority of the problem people having,
is they are hardworking, but their money is lazy.

 I personally think that not only we should work hard,
our money should be hardworking too,
then only we can support each other,
to be able to achieve our financial goals faster.

 Thanks for reading.

I don't provide any buying/selling suggestion above,
please make your own investment decision and be responsible with it.

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