Is your savings account worth it?
Putting money aside is will always be a worth while personal and family strategy, however how you choose to save can make a HUGE difference. Can we agree that interest-rates assigned to savings accounts are garbage. In a world of big numbers the it can be an overwhelming thought to save money when trying to live your life, but there is always something you can save or cut back on.
Today, I want to share with you a mindset I developed and shared with friends some time ago. Traditionally, we've been thought to save money in a bank account, but remember I said there is very little benefit to doing it that way. I remember saving 10K in a savings account for at least a month to see how much interest I would gain. I was not impressed at all.
Great news, there are so many platforms available to SAVE and INVEST, it makes what I am going to share so much easier to do. I've been a fan of using TD Ameritrade and Robinhood, and with these apps I can put my money in a Money Market account or savings account (nothing new), but having the ability to purchase Shares, ETF's and more I can leverage that money earn more than just saving.
How? Glad you asked. Let's say you have $100 to save with your Robinhood account and you purchased 1 share of Ford (F) at $8 and it is now $13. You've earned a $4 value increased on money your saving opposed to account you would earn from a traditional savings account. Now keep in mind that the gain of $4 is from price appreciation. If Ford was still paying dividends you would be paid money per number of shares you own.
Think about it. If you like this post let us know.