Did you know, by putting all your money into the bank, you will be losing a huge sum of it due to inflation?
Here’s a quick calculation:
For example, Singapore’s inflation rate is around 2%, while the average bank gives you a 0.05% interest rate. If you have $100,000 in your bank, you will be losing $1,500 a year, just from inflation!
Convinced to put your money elsewhere? Here are some alternatives for you to consider:
Here’s How You Can Kickstart Your Investment Journey
- Doing nothing and leaving your money in the bank is UNWISE as inflation eats away at your savings atĀ almost 2.0% a year.
- Consider passive investment options with long time horizons (like ETFs, bonds, and unit trusts)
- Set up a simple regular investment plan, and set aside a sum of money for investing.
- Understand that it is highly unlikely that you will lose a huge amount of money unless you āgambleā and āspeculateā on certain stocks. Or take huge bets based on market talk.
Ready to start? Here’s a cheatsheet on investment products that’ll be useful for you!
This article first appeared on The Woke Salaryman and is part of a content syndication agreement between The Woke Salaryman and Seedly.
For this series of comics that are related to all things personal finance, the Seedly team worked closely withĀ The Woke SalarymanĀ to bring you useful sh*t which you can apply to your everyday life.
The Woke Salaryman is the brainchild of a Singapore-based duo that aims to help people reach financial independence early. It is the quintessential page for people living in Singapore who earn the median salary and didnāt inherit their fortunes from their parents.
If you have any questions with regard to personal finance and retiring early, feel free to discuss them with the friendly Seedly Community!
