Should You Save Money

Ahh, the old tale that the best thing you can do is save money.  What if I told you that saving your money is not the best thing you can do?  Yup, you guessed it, investing is.  Now do not get me wrong, saving it is better than blowing your money on a new car that loses 40% value when you drive it off the lot.  I know this post may have some of you skeptical but please follow me.

In a savings account you gain interest.  To some they think that they are “gaining” money.  In some views, yes, they are.  But let’s look at a business example.  If a business is bringing in 100 million in revenue, but they are spending 200 million to get this, they are losing money.  This is like putting money into a savings account and revenue is like that bank interest rate and the spending is the inflation rate in the U.S..  Another example is putting away 100 dollars, and in 10 years pulling that 100 dollars out.  Yes the money would have obtained interest but it would be very small.  Now, this 100 dollars 10 years later can’t buy as much because the buying power of the dollar decreases every year.  So you might have the same dollar amount but it buys less.

So what is the best way to offset the inflation rate?  Invest in safe companies.  The returns will actually set you up better to be investing in your future, and lead to a much happier life.

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