Friday, November 26, 2021

13. Is an ATM account an investment?

 


You have some extra money that you decided to save. 

Where did you keep it? 

  • In your pocket? 
  • In your bedroom drawer? 
  • Under your bed? 

You retained physical possession of your money, so this is your savings.

  • Did you deposit this money in the bank? 
  • Did you place this money in a mutual fund? 

Did you transfer physical possession of your money? if you did, you are investing!

You are already investing if you transfer possession (even digitally) because there is now a possibility that you may not get it back, second is that you are given a return (interest) for taking this risk.

Is depositing money in a bank "investing"? This is a very important realization because accepting that bank deposits are investments will make you more conscious on how much you keep on it because of the returns.


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