The simple truth: Your money loses value sitting in a savings account, but investing can help it grow faster than inflation.
Most people keep their money in savings accounts earning around 1-5% annually, while inflation typically runs 2-3%. This means you're actually losing purchasing power over time. Investing offers a path to potentially outpace inflation and build real wealth.
Time is your biggest advantage. Thanks to compound interest, money invested early has decades to grow. A 25-year-old investing $200 monthly could have over $500,000 by retirement, while someone starting at 35 might only reach $300,000 with the same contributions.
You don't need to be wealthy to start. Many brokerages now offer zero-fee trading and allow you to buy fractional shares of expensive stocks. You can begin with as little as $50 and gradually increase your contributions.
Diversification reduces risk. Instead of picking individual stocks, consider low-cost index funds that spread your money across hundreds of companies. This way, you're not betting on any single business but rather on the overall growth of the economy.
Start simple. Open an account with a reputable broker, set up automatic monthly transfers, and invest in broad market index funds. As you learn more, you can explore other options.
The biggest mistake isn't making a bad investment—it's not investing at all. Even modest, consistent investing beats perfect timing. The best time to start was yesterday; the second-best time is now.