Have you ever noticed that people who think they’re being smart with money pretty much always talk about how much they have saved, or how much they are putting away for a rainy day each week/month? This might seem smart on paper, but it definitely isn’t the smartest way to use your money. Even if you put some cash in a high interest bank account for a few years, it’s not going to make you as much of a return as investing it!
Why Invest Your Money?
Think about it; when you save a certain amount of money, you only generate a small amount of interest over time. Even with this interest, the money is still going to depreciate in the long-run. Things get more expensive and living costs rise, so that money you have saved isn’t going to seem so amazing later on down the line.
When you invest your money by making smart choices and diversifying your portfolio, you can make much more money back in the long run. All you need to do is be prepared to wait for it. Yes, investing your money comes with risks, but that’s why you start out making smaller investments until you know what you’re doing. Once you’re used to the market and you have a good idea of different terms and procedures, you can start investing your money in bigger things. How about in a start up business? This helps both you and the start up. Not only will you help an innovative business get started, you’ll also put money into something you believe in. The infographic below can give you more information!
Credit to Fortunate Investor