15/02/2013
How Does Investing Benefit?
The benefits to personal investing are limitless. Investing is not just a fancy word for wealthy people becoming wealthier, but a common tool used by the average American to protect and build their assets. Investing is often referred to as putting your money to work for you. While this is certainly true, the other side of investing, not investing, should be discussed more often. Not investing is like letting your money work against you. Many people focus on savings as their sole form of investment. Savings accounts are an investment for the banks, not for the account holder. This is because money kept in savings account, unless you have some yet unheard of bank paying you 8% or more on your money, is losing value each and every day. The culprit is inflation. Inflation is the devaluation of currency. It exists, is happening today, and will always continue to increase with time. Inflation is why milk costs over $3 a gallon now and $.25 in the 1960´s. It´s not that there are less cows or milk to go around, it’s that the buying power of the U.S. dollar shrinks over time. This inflation means the money in your savings account is worth less today than it was yesterday. $10,000 saved for retirement and then used 20 years from now will on average lose 10% a decade or more meaning that same $10,000 will only really be worth about $8,000. It is for this reason, and the fact that with investing the potentials for profit are not limited by what a bank says you deserve, that people are investing for retirement, investing for profits and looking to feel the benefits of investing sooner rather than later.
Making Money In Investing
Making money investing, feeling the benefits of investing, is not rocket science. Even the most uneducated or novice investor can easily make 20% or more on their money annually. That same money if left in a bank account will most often earn 3-4%. The reason investing is so popular is because it works. Sure there will always be wealthy investors and professional financial experts making a killing in the stock market, but that does not mean you can´t make some money to.
