Submitted by nsscadmin on
No matter where you go you’re probably being bombarded with ads and content telling you to invest. TV commercials, junk mail, online ads, email spam and more. But why? Why should you invest? What’s in it for you?
By investing you can make your money work for you. Many people save their money, by keeping it in a savings account, or locked away somewhere safe at home. Saving is good, because it allows you have easy access to your money when you need it in an emergency or for a larger item you need to save up for a few months to purchase. But it’s not investing. Left in a savings account or locked away your money can be impacted by inflation.
If you lock away $100 in a piggy bank in your house it will always be $100. But, what you can buy with that $100 changes because of inflation. Let’s say for example inflation was two percent annual. After a year the $100 of goods and services you could have bought with your $100 now costs $102. You can’t afford it anymore because the value of your money has decreased.
If you were to invest that $100, in stocks, bonds, mutual funds, ETFs, or some other type of investment vehicle you have the chance to keep up with or event surpass inflation, maintaining the value of your money.
Through investing you can also create wealth over time. This wealth can be used to reach you financial goals of retiring, buy a house or car, or paying for university or college.
