How to Preserve Savings in the Current Economic Situation: Tips from Experts in Hungary

Published: November 30 2023

In the current economic situation, many people in Hungary are concerned about how to preserve their savings and protect them from the effects of inflation. Experts from Bank360.hu provide valuable tips and advice on how to make the most of your money and achieve your financial goals.

Keeping cash at home or in a non-interest bearing bank account can result in significant losses due to inflation. Many people are afraid to invest in longer-term financial products because they fear they won't be able to access their money when needed. However, it is important to understand that these investments can typically be sold within a few working days, and the funds can be transferred back to your bank account.

Some people believe that investing is only worthwhile if you have a large sum of money. This is a misconception. There are various options for regular savings that allow your money to grow and generate returns. For specific goals such as retirement or healthcare, there are savings options that also provide tax benefits, which should be taken advantage of.

It is advisable for families to have a readily accessible emergency fund for short-term goals such as home renovations or purchasing a car. For longer-term savings goals such as retirement, it may be worth taking on slightly higher levels of risk to potentially achieve higher returns over time.

If you are facing similar financial challenges, it is recommended to consult with your bank. Most financial institutions are equipped to provide guidance on how to invest your savings to meet your goals. They can also assist in determining how much money needs to be saved within a given timeframe to achieve desired objectives. Alternatively, there are web-based applications and mobile applications available that can aid in financial planning.

Preserving savings in the current economic situation requires proactive measures to combat inflation and make smart investment decisions. By following these expert tips and seeking advice from financial institutions, individuals can take control of their finances and work towards achieving their financial goals.

Why do people in Hungary hesitate to invest their savings? Many people in Hungary hesitate to invest their savings because they find investment products too complicated and prefer to have their money easily accessible in their bank accounts. They are also concerned about not being able to withdraw their money in case of need.

What can happen if you keep your money in cash or on a non-interest bearing current account in Hungary? Keeping your money in cash or on a non-interest bearing current account in Hungary can lead to significant losses due to inflation.

How can people in Hungary ensure their savings are not eroded by inflation? To ensure their savings are not eroded by inflation, people in Hungary can consider investing in various options such as long-term government bonds, investment funds, or other securities. Despite concerns, it is possible to sell these investments quickly, usually within a few working days, and transfer the invested money back to their bank account.

Is it worth investing even if you have a small amount of money in Hungary? Yes, even if you have a small amount of money, it is worth investing in Hungary. There are various regular savings options that allow the money to accumulate and generate returns. Additionally, tax benefits can be claimed for savings dedicated to retirement or healthcare purposes.

What advice do experts provide for families in Hungary regarding savings? Experts advise families in Hungary to build a readily accessible liquid reserve for short-term goals such as home renovations or car purchases. For longer-term savings goals, like retirement, it may be advisable to take on slightly higher risks to potentially achieve higher returns. It is also recommended for families to consult with their bank to receive guidance on how to invest their savings and reach their financial goals.

Are there digital tools available to help with financial planning in Hungary? Yes, there are web-based applications and mobile applications that can assist with financial planning in Hungary. These tools can help individuals with budgeting, tracking expenses, and setting financial goals.