Basics for savings

1. Personal savings is for the rich

The same compoung interest principles apply for larger deposits as well as for smaller term deposits. People with more money will feel the advantages more quickly, but with enough time and discipline even small basis can become a fantastic revenue stream.

2. My spending doesn't allow me to save money

One of the most common myths about personal savings. Since people like all spend on things they don't really need or use, just with a simple review of your monthly expenses anyone can find a decent amount available for savings.

3. Only large deposits get high interest rate

By observing the market movements, getting regular information on personal savings and bank promotional activities you can also get a high interest rate.

4. Personal savings are 100% safe investment

Term deposits are trully among the lowest risk financial products in the world and many countries actually guarantee for your deposit. But history has shown that even the big banks (rarely) can go bankrupt.

5. Central banks determine the interest rates

The savings interest rate is determined on the local banking market, depending on supply and demand.

6. "Promotional interest rates" always have a catch

Partially true, since marketing activities are mainly directed to attract new customers to banks.

7. Personal savings in Euros is better than Croatian kuna

As a matter of fact, Croatian kuna has higher interest rates in comparison to Euros.

8. I have enough time to decide on personal savings

In personal savings, time literally is money. The sooner you start, the more money you'll get.

9. It is better to spend money instead of saving it

Consumption and personal savings aren't mutually exclusive. One supports the other.

10. Money management is easy

You can control finances only if you understand available options and know your monthly/yearly revenue streams. Most people want fast and over the night solutions, which makes a perfect ground for costly mistakes.