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 at 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 ‘gamble’ and ‘speculate’ 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.
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