"Save your money" is something that a lot of us have heard almost all of our lives, whether from our parents, our aunts or uncles. Is it really a good idea to save your money though? What if I told you that by simply just saving your money in a bank account or under your mattress you were actually LOSING money? Crazy right? Consider this, if you had $100 in 1980, what would that have bought you at the grocery store compared to what it would buy you today? That's the problem with saving your money, it loses value over time because things get more and more expensive so your dollar has less buying power as each year goes by.
Investing is king when it comes to being financially responsible. For example, if you took that $100 in 1980 and invested it into the stock market, it would be worth about $11,675 today. What could you buy at the grocery store with that! It's good to save a bit of money for an emergency, but the majority of your money should be invested in things that will allow it's value to grow and compound! Next Blog we'll talk about compound interest!