Quick Reason Putting Money In The Bank hurts you more

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I have yet to hear from someone coming with solid evidence keeping money in the bank is the way to go to grow wealth. With many believing we are about to hit a recession with the stock market crashing I still believe there is plenty of opportunity for an investor to grow their positions and/or add more companies to their portfolio.

Since I’m in it for the long term, I do not mind dollar cost averaging at all. The market has never disappoint in the long run according to my research look at the 100-year historical chart from macrotrends.net below for example 

Now to get back to why I do not put my money in the bank is simple because there are too many opportunities in the stock market and alternatives. 

“Skip the traditional way of keeping your money in the bank just because you think it’s safer. WRONG!!!”

Don’t get me wrong the only money I keep in the bank is my budgeting money that covers our monthly bills and an emergency fund on a 0.06% interest rate and my allowance.

You can’t go wrong investing in good growth stocks such as Mutual funds [preferred], REITS and ETFs. Keeping your money in the bank technically allows the bank to invest your parked money multiple times make more money out of your money while you barely get anything in return.

Let’s not forget your money loose around 3% every year. 

Let me show you a clear example of why putting all your money in a saving do you NO justice

Let’s say I put $200 monthly for 40 years with an bank interest of .06%

in 40 years, I’ll have $97,132 right?!

Well in the next 40 years with a 2.94% [offset due to bank interest rate] inflation it will be worth $30, 479

Saving money actually cost you more money while investing in growth companies the value of your dollar increases.

I plan one day get into the Real Estate market, maybe get a multifamily property as a start [why not?!] but in the meantime I’m okay with looking into Online Real Estate crowdfunding, growing my businesses and continue investing in the financial market.

I’m not a Certify Financial Advisor [Disclaimer]; therefore please do your own research or consult one BUT I strongly believe in the power of compounding.

It’s never too late to start. Start now.

Happy Investing!!!

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