My mom used to always tell me:
“Saving your money is the wisest investment.”
I am confident that your mom too.
It sounds like good advice.
But saving can never lead to wealth without investing.
Let’s go over why that is.
For those of you who don’t know,
Inflation refers to rising prices of goods/services while your purchasing power decreases.
In other words, “too many dollars chasing too few goods,”
Because of inflation, your $1,000 today might only purchase $750 worth of goods in the future.
Along the same lines, a household budget of $50,000 today might cost $75,000 by the time you retire.
That needs to be considered in your investment planning.
Ignoring this risk can derail your big financial goals.
That is why the prices of things like: Rent, Groceries, Clothes, Cars, slowly go up every single year, often without you even really noticing.
There is a funny story about the German economy just before Hitler came to power that illustrate this concept.
The story goes that a woman took a wheelbarrow filled with money to the bakery to buy a loaf of bread.
After negotiations a price for the bread she came out of the bakery to take her money, only to find that someone had stolen her wheelbarrow and left her money, this is happening to the saver.
Therefore, keeping money under mattress or even in bank account is not good idea.
The average inflation in most countries 3%, while the average savings account interest rate was 0.09%
Inflation will slowly eat away at your buying power if you do not invest.
In order for your money’s purchasing power to not be slowly eroded by inflation, you must invest your money in assets that appreciate more than inflation.
Putting your money to work for you through investing can help you become financially comfortable and live the desired lifestyle.
Now you might be asking yourself,
How do I get started?
To help you start, I prepare a FREE guide for you, Click Here to Download.
And if you are ready to take the first step, enroll in my course “Investing For Beginners: How To Invest With Confidence” HERE.
So, take that first step and start your investment journey today!
If you have any question, contact me on drwafaa@thesmarteducation.com