1. You end up losing money when it sits in your bank account
Depending on your country’s rate of inflation, you’re likely to actually lose money when you leave it in your bank account. If your money is not growing at the same or faster rate than the cost of goods and services, then you are losing purchasing power. The best way to do this is to invest your money.
2. Bank account interest rates are low
Checking and savings accounts typically yield low rates of return. Investments, on the other hand, help you grow your wealth with high rates of return. Make the most of your money and invest in the world’s leading financial markets.
3. Investing long-term yields high rates of return
Over the last 80 years, the annual return on the S&P 500 has been on average 10.0%. In fact, rates of return for three decades within this period exceeded 17.0% per year. That is a much higher return than what you could earn from a bank account, including from a money market account.
4. Investing in a diversified portfolio is easy
You don’t need to be an expert investor to make wise investments. If you invest through a social trading network, you can get advice from expert investors and invest in multiple stocks through one online platform. If you want to grow your wealth, it is advisable to invest your money in a diversified portfolio.
5. Earn additional income in the form of dividends
Dividends are a portion of a company’s earnings that are paid out to a certain class of investors. Invest in stocks that pay out dividends and you’ll earn an additional income. You can either take the dividends or reinvest them, which will obviously increase your total return on investment.
The information included in this article is intended to provide information for general purposes only, should not be construed as legal or any other advice on any subject matter and should not be relied upon as such.