For many, January is a time of tightening belts – not only after the festive feasts that traditionally see out the previous year, but also in the financial sense as many households try to balance the books for the year ahead.
Following on with this week’s financial theme, the issue of saving is on the agenda as it was found that Belgian savers effectively lost a whopping €22 billion without even delving into their accounts. This is a sorry revelation for anyone who has diligently put money away in the hope of enjoying the fruits of their labours at a later date.
Indeed, with life made so much more complicated by Covid and the restrictions imposed to prevent its spread, people often chose to forego pleasures they would normally afford themselves and essentially save them for when things get back to normal.
Precisely because of this dip in consumerism and rise in saving, the blight of inflation is cause for considerable concern. In 2021, Belgians banked more than ever before, breaking €300 billion in total savings deposits. For the millions of residents with savings accounts that are paying pitifully low interest rates, inflation of around 5.7% massively devalues their hard-saved cash.
It can be a tricky concept to get your head around, especially given that the numbers in your account won’t actually be going down. But it all equates to a sorry time for saving and could see some deciding to put their money elsewhere.
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