Investing can combat Inflation, give you potential for higher returns, and help you reach your long-term goals.
Unfortunately, savings alone is not always enough to allow us to reach our financial goals. Given the effects of inflation and the relatively low returns of savings accounts, investing your money can be a quicker way to achieve long-term goals.
Let’s take a look at three key benefits of investing:
Potential for higher returns
The average historical returns from investing are substantially higher than those from savings. Obviously, the higher your returns, the more money you’ll have in the future. However, investing returns are not guaranteed – it involves risk and there is potential to lose money.
Because of inflation, the cost of goods and services go up over time. This means your long-term goals will cost more in the future than they do currently. Investing offers the potential to keep up with, and possibly even outpace, inflation.
Reach your long-term goals
Savings alone might not allow you to accumulate enough to reach your goals. Investing those same dollars can increase your chances, or at least position you to accumulate more money over time. The potential for higher returns from investing and the power of compound earnings can help you reach your long-term goals.
Take a few minutes to learn more about compound earnings and how time can help you build wealth.