{"id":3330,"date":"2021-05-19T08:38:06","date_gmt":"2021-05-19T08:38:06","guid":{"rendered":"https:\/\/enorcerna.com\/wiki\/definition\/hoarding\/"},"modified":"2021-05-19T08:38:06","modified_gmt":"2021-05-19T08:38:06","slug":"hoarding","status":"publish","type":"post","link":"https:\/\/enorcerna.com\/wiki\/definition\/hoarding\/","title":{"rendered":"Hoarding"},"content":{"rendered":"
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\nHoarding is the practice some people do with the goal of organizing and maintaining their savings in the form of cash. It is a way of saving, but that implies that the money is not put into circulation.<\/strong><\/span><\/p>\n

<\/p>\n

Hoarding is the practice that some people do to save. It is commonly known and referred to as \"keeping money under the mattress or in the closet at home.\" <\/p>\n

This money or wealth that is saved does not intervene in economic activity, so the individual saves these amounts in cash with the idea of \u200b\u200bsaving for the future. <\/p>\n

Therefore, hoarding would be a way to have an asset that does not provide any kind of cash flow.<\/p>\n

Why is hoarding put into practice?<\/h2>\n

There can be various causes. These are the main ones: <\/p>\n

    \n
  • People who hoard are not interested in investing in or acquiring any consumer goods at that particular time. <\/li>\n
  • They also do not feel comfortable investing or do not pay much interest in what banks can offer you to keep your money in them. <\/li>\n
  • Investing in real estate or other types of actions does not satisfy them and therefore they decide to save in the form of cash. <\/li>\n
  • It does not give them any security to invest their money in any aspect of the financial system. <\/li>\n<\/ul>\n

    Difference between hoarding and saving? <\/h2>\n

    Although many people confuse these terms, it is necessary to delve into them to point out the most prominent differences that exist between both concepts: <\/p>\n

      \n
    • Save money:<\/strong> It is about stopping spending a part of the income that has been received. But people who save can choose to invest to acquire diverse assets. For example, real estate, bonds or stocks. It may be that there is less spending when consuming goods, but greater interest when investing to achieve more profitability in the future. <\/li>\n
    • Treasure: <\/strong>Some experts agree that hoarding would be to hoard the cash and not put it into circulation. That is to say, it constitutes the maximum intention of the saver to have a good mattress. Simply save money or jewelry without there being a circulation in the market of these goods. <\/li>\n<\/ul>\n

      How does hoarding affect the economy? <\/h2>\n

      It can be harmful for several reasons: <\/p>\n

        \n
      • Decrease consumption. <\/li>\n
      • The economy slows down because there is less circulation of credit. <\/li>\n
      • There are no investments when it comes to hoarding. Since the objective is to save that money in cash, but without doing anything with it in principle. <\/li>\n<\/ul>\n

        It should be noted, however, that the decision to hoard, save or invest is ultimately up to the citizens. Depending on the preferences of each one, we can decide between saving and hoarding. However, we have to take into account the effect of inflation on our purchasing power. Well, hoarding too much could cause us to lose purchasing power in the future.<\/p>\n<\/div>\n\n\n

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