Financial education needs to be covered in school curriculums with as much importance as core subjects like English. Why? Because all of us wants better financial health but millions of people grow up without truly understanding key financial topics, like investing.
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We only hear about investing in movies or through the news where it’s typically associated with high-earners. You see people blowing money on the stock market or investing millions in new startups. It leads you to believe that investing is for the rich when really it’s for everyone.
All people should start investing right now to achieve better financial health. It’s arguably the best thing you can do with your money, and the points in this post explain precisely why.
Investments Save More Money Over Time
What do you do when you want to save money? Honestly, most people open a savings account with their bank. This can give you an account with just above 1% AER, though the average interest rate has been 4.29% over the last 35 years.
Instead of opening that account and depositing all of your savings, what if you invested the money? Research shows that the average stock market return is 10% per year. It’s been that way for over a century.
Investing in assets with steady growth and low risks will always bring you more earnings than savings account interest rates. So, if you truly wish to save money, investing is the better option.
Investments Help You Plan For Retirement
By all means, you should have a pension plan to plan for retirement. Employed individuals should have a pension from their work, as well as a state pension. Self-employed people need to open a personal pension to save up for the golden years. Investments serve as a great addition to your retirement planning.
Whether you invest in a house and sell it after decades of market growth, or you buy shares and hold onto them for years, you’ll generate huge returns later in life. Combined with your pension, it should be enough to supply all the funds you need when you’re not working.
Investments Mean Better Financial Health
Having investments rolling in the background will assure you of personal financial health. But what about your family? If something happens to you, investments will help them deal with the financial consequences.
They lose your income, but you can ensure all of your investment assets are passed to family members. Hire an estate lawyer to make a legitimate will, and you’ll safeguard your family’s financial future as well as your own.
Whatever happens, you can sleep soundly each night knowing that you and your family are in a good spot financially. It’s not too late to start investing, but the sooner you get on the investment ladder, the greater the benefits.
You don’t need a lot of money to invest either; you can begin with small investments every week. A good way to start is to take what you’re putting in a savings account and invest half of it. You diversify your savings and can see clear proof of how much better an investment is!
Final Words on How To Enjoy Better Financial Health
In conclusion, integrating financial education into school curriculums is crucial, emphasizing its significance alongside core subjects like English. The widespread lack of understanding about key financial topics, particularly investing, underscores the necessity for early financial literacy.
The prevailing misconception that investing is solely for the affluent is debunked, as this post asserts that everyone should embark on their investment journey for improved financial health.
The points outlined highlight the manifold benefits of investing, from saving more money over time through higher returns than traditional savings accounts to fortifying retirement plans and safeguarding the financial future of one's family.
The emphasis on early and consistent investment, even with modest amounts, is a resounding call to action, encouraging individuals to take charge of their financial well-being and enjoy the long-term advantages of a well-managed investment portfolio.
In essence, the path to financial security begins with empowering individuals with the knowledge and tools to make informed investment decisions.
