Inflation, rising cost of living, loss of purchasing power – technical terms you hear every day but don’t always fully understand. These terms are not just theory, they have a real impact on our daily life, especially when you are engaged in the study and bread business and you do not have millions in the bank account.
Yuh Brand Manager Alain Greter (31) explains very clearly what the 3% inflation rate Switzerland is currently experiencing means: “For example, let’s take a young person with an average annual salary of 50,000 francs. If prices are 3% higher, life becomes more expensive and the standard of living drops sharply accordingly, unless he is given a wage increase of 1,500 francs at the next wage negotiation.”
In other words: If you are no longer working or taking up another small business, you need to limit yourself or at least think very carefully about whether it is worth buying a new smartphone. Yet we in Switzerland are still in relatively good shape compared to young people living in Paris or Berlin: “In neighboring France, for example, prices have literally skyrocketed and average inflation is 6%. So our European friends need to tighten their belts more than we do.”
You have super powers!
You always have a choice in life. You either let the general pessimism hold your breath and whine, or you decide to be a winner and take control of your own life. Would you like to spend the New Year in Madrid? Or celebrate your friend or girlfriend’s birthday with a nice meal at a fancy restaurant? There is no one-size-fits-all solution to making these dreams come true. Look at your savings and create a budget. Do you still remember how your grandmother gave you a franc for the piggy bank? He thought ahead of your financial security and repeated the same words over and over: “Constant dripping erodes stone.” Let your grandmother’s wisdom inspire you today.
Interest rates have been negative over the last decade, meaning money held in savings accounts has not turned into profit. Everything has changed since this year: Interest rates are now positive again and your money is bringing something back. However, caution is advised: Only a few banks pay their customers.
Alain Greter explains: “With Yuh, customers benefit from positive interest rates since September 1, 2022. 100,000 francs are 0.5% on cash balances up to dollars or euros.” For example, for an 18-year-old apprentice earning CHF 1,500 per month, a savings account remains a good way to grow his money.Another interesting way to put your money to work is the stock market.
An outdated cliché
The world of the stock market may seem opaque. We all think of curves and numbers that change throughout the day and are often incomprehensible to mortals. Some financial market players naturally do nothing to make investments more attractive by charging high fees for stock trading. Also, clients often lose track of their investments due to the size of their investments. But there are simple solutions, as Alain Greter explains: “Anyone who wants to take their first steps into the stock market with the Yuh app can do so at any time via their smartphone and stay in control of their business at all times. With fractional trading, you can start investing for as little as 25 francs. For example, a Take the Lindt stock: although it’s around 100,000 francs, you can still invest with 25 francs. This will buy you 0.0003 shares. At Yuh you don’t pay a flat fee for each investment as in many banks. When trading stocks you only have 0 percent of the invested amount. You pay .5.»
Another important thing to note is that fractional trading gives an investor the opportunity to diversify their portfolio and purchase multiple stocks from different companies. For example, if you have a “modest” budget of 100 francs, you can buy shares in Lindt, Google, Amazon and Tesla for 25 francs each. Alain Greter says: “You don’t have to invest all your money in one company and you can diversify your portfolio right from your smartphone.” In short, inflation doesn’t have to give you sleepless nights because there are practical solutions on your smartphone. Even if prices are rising, there are very simple ways to increase your money and increase your purchasing power.