What Is Investing and Why You Should Care.

Started by BAYIYouth · 0 Replies
Avatar

BAYIYouth


2 years ago

Posted: 2 years ago
Investing, at its heart, is the trading of your money today for a lot more money in the future.

The investing we talk about revolves around the stock market. That said, putting your money into a business you create, or a home you will live in, can also be considered an investment.

Investments by definition are high yield over the long term. Operative word being long term.

There are people who are afraid of the market. One common approach of people who fear the market is that they put the majority of their money into a combination of checking and savings accounts. I’m sorry, but the joke’s on them.

As it turns out, banks don’t like to give away their money. That mindset is reflected in the interest rates of checking and savings accounts.

When you deposit your money in the bank, the bank turns around and invests that money at 7% a year or more. After they collect their profit, they give a tiny shaving of it to you.

But wait, that’s your money they are investing, you deserve a bigger cut!

The only way to combat the bank taking advantage of you is just to invest it, yourself.
Share on my timeline