Investing · Personal Finance

3 Reasons to Invest

Still looking for a reason to get started investing? Here’s 3:

  1. Inflation
    • Great, you’ve saved every last penny in your checking account for the last 30 years. Congrats! Bad news, though. The money you saved yesterday isn’t worth as much today. On average the rate of inflation is 3% and the way you safeguard against it is interest. However, the average savings account barely provides .01% (see how I save). On average the stock market has returned 7%. The math is clear.
  2. Achieve a big goal
    • Save for retirement, buy a home, Build wealth
    • If you have a goal that has a large price tag and a time horizon of at least 3 years from, you can benefit from investing. This allows us to put small amounts away today to achieve the same goals. For example, you need $1million to retire. You can start at age 30 saving $650 a month or age 55 saving $4500 a month. Which is more appealing?
  3. Multiply your money
    • Imagine if every time you put a $1 under your pillow and went to sleep you pulled out $2 in the morning. You’d keep all your money under your pillow, no? Well investing can be like this you leave your money under the right pillows for long enough. Without investing the money you have will always be the money you have. Every time you look under the pillow there’s only $1. However, when you invest, although it won’t multiply overnight, your money grows without you doing very much. You don’t have to work overtime or ask for a raise. And the best part is it’s accessible to everybody.

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