Having your money sit in a savings account may not seem like much of an option in today’s uncertain economy. Despite this, it is still important to set aside some funds in a savings account in case of an unforeseen emergency or future opportunity. Even if you are not able to set aside a large amount of money, saving what you can is better than not saving at all.
One thing to consider when deciding where to park your money is if the account is able to keep up with inflation. Inflation gradually erodes the value of your money. If your savings account can’t at least keep pace with the inflation rate, it will eventually be worth less than it was when you initially deposited it.
The good news is that there are now tools to help you assess how much your savings is accumulating over time. The Savings Simulator is a tool that allows you to compare your savings rate with that of inflation. This tool can be used to predict how much money you will have in the future based on current inflation rates.
Using the Savings Simulator is simple. All you need to do is enter in the amount you plan to save, the amount of interest you’ll receive from the account, as well as the length of time you plan to deposit funds. Once you’ve entered your information, the tool will inform you whether or not you are beating inflation.
The Savings Simulator is a great tool if you want to ensure that your money is growing at a rate that is higher than inflation. A basic savings account may not be able to match inflation, but the Savings Simulator can let you know your best course of action. With this tool, you can make sure that your money is not only safe, but also minimising the amount of lost purchasing power due to inflation.