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What Is Investing and Why You Should Care: 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. The Question is, Why Invest? The illustration below shows a $1, 000 investment over 30 years and compares it to what you would earn with a checking account and what you would earn with a savings account. With an investment account on average, you can expect to earn over 19, 700% more as compared to a checking account. Interestingly, over 30 years you can only expect to gain roughly $175. 80 with a checking account and $281. 89 with a savings account – a difference that is pretty meaningless when you look at it over such a long period. Especially when you would gain over $6, 000 if you had just invested your money like we told you to. You’re better off keeping 90% of your money in a checking account and 10% in investments than 10% in a checking account and 90% in a savings account. You would be crazy not to invest, and you would be equally crazy to jockey your money between a checking and savings account as the difference is negligible. Personally, I don’t even have a savings account as it just complicates my life.  
What Is Investing and Why You Should Care: Investing, at its heart, is the trading of your money tod

1 Answer

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by (170 points)
Can I share this to my Instagram page and give you guys credit for it? Absolutely fantastic illustration
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