Why Save Money When You Can Invest?
Ah saving money, it’s the best thing you can do with your personal finances, right? Well, it turns out saving money isn’t as effective as you might think. When you put money away in savings, it tends to just sit there accumulating a pathetic interest rate. Over the course of ten years, your savings can barely increase.
This isn’t necessarily bad as you still save money and it is still useful for you. However, there’s a potentially more effective idea; investing your money. If you have a sum of money you want to save, you could get more out of it by investing. Investments can generate more money over time, meaning your savings can increase. In a way, you are still saving money in the sense that you’re not spending it and never seeing it again. It’s a different way of doing things, and I believe it to be far more effective than saving alone.
So, if you want to start doing this, I have a few words of wisdom to think about:
Invest In Things With A Bright Future
Naturally, the best way to earn money from your investments is to invest in things with a bright future. This means they have more chance of growing, and you can earn a decent profit when you eventually sell. A good example of this is bitcoin, a digital currency that’s growing by the day. The future looks promising, so it’s a good investment right now. If you’re looking for a platform to invest in this, then you can see it here. There are other investments too, the main idea is to shy away from things that aren’t looking like they’ll grow, or are already on a downward spiral.
Set Up An Investment Bank Account
Most banks offer you the chance to set up an investment account with them. They can sometimes be called investment savings accounts or something similar. This is basically everything you could possibly ask for. It’s like a savings account in that you can continuously make deposits, the difference is that your money is invested for you. The bank will have packages you can choose from with predicted interest rates that are usually a lot higher than standard savings accounts. You won’t make as much money as you would with the first idea, but it’s a great slow burner for your long-term financial goals.
Invest In Retirement
A lot of people will save for their retirement, but you should invest in yours instead. Find yourself a good 401(k) or pension plan, and you can set a lot of money aside for future use. Essentially, you can ‘save’ money by depositing it in your pension pot. Then, the pension provider contributes as well, and you earn a lot of money over the course of your life. By the time you retire, you’ll have saved loads of money, but gained a lot too.
Saving money is definitely a smart thing to do. However, the smarter idea is to invest your savings, so you get more out of them.