The Real Risk Is Not Investing

Keeping all your money as cash instead of investing is not a way to keep it “safe,” it is the equivalent of modern-day mattress stuffing. The bigger risk is not investing, sitting on the sidelines while inflation erodes the value of your money. Savings accounts today make less than one percent in interest, while the long-term average rate of inflation is about 3% per year. In other words, money in a savings account can’t even keep pace with inflation over the long run.

Clearly, you want your money to be set up so that it can at least keep pace with inflation – but you also want your wealth to grow! And the way to make your money work for you, is by investing. Opening an investment account is one of the most luxurious things you can do for yourself. Think of every millionaire and billionaire you know of. They have one thing in common: an investment account. Do you have one?

Once you’ve taken care of the basic financial priorities–starting your emergency fund, and eliminating high interest debt (like credit card debt)–then it’s time to invest. Select a balanced blend of global equities, fixed income and commodities. Or, maybe you’re not yet at that point. Don’t let that discourage you from getting on track to start investing. Make a road map that details the steps you’ll need to take in order to set up your emergency fund or pay down your debt. Every investing journey starts somewhere, and the sooner the better.