How to lose money every single day with your bank account
Having a savings account at your bank is a good start. But did you know that you're actually losing money by keeping your savings there?
Your savings account probably pays something like 0.25% interest. But did you know that inflation is over 3%? (Here's the current inflation data.)
That means that over time, your savings-account return is actually losing you money! Yes, you're earning some interest, but you're losing in terms of real purchasing power.
This is like handing small amounts of money to a seemingly benevolent friend who is actually a manipulative crack dealer.
What can you do? Keep your savings account--it's important. But move as much of your money as you can into investments that will earn for you. I've written about average return rates before:
0.25% - typical bank savings account
2.89% - 2-year CD
9.4% - average annual mutual-fund return (with survivorship bias factored in)
11% - average return of the market (remember index funds)
In other words, go invest in places that won't lose you money. PLEASE!!!!
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