Blog Invest The Benefits Of Investing. It’s Not Just for Your Wealth, It’s for Your Health

The Benefits Of Investing. It’s Not Just for Your Wealth, It’s for Your Health

date June 29, 2020 time 3 min read 779 views

Here’s a reason to invest you might find troubling. Money is harder to manage than it used to be (1). Think about it.

  1. Credit tools are getting more complex

Never before have their been more ways to simultaneously earn interest and pay it. Credit cards and personal loans can bring your financial dreams to fruition. They can also just-as-easily lock you in a spiral of debt if you don’t read your terms carefully. Just ask your friends with student loans.

  1. A global economy affects your local prices

Today we live in a global economy, and it can leave you feeling out of the loop. The closing of a factory in Guangzhou, China can affect the price of goods in your home of Indianapolis, Indiana. You need to have an ear to the ground for global news just to know why your veggies are so expensive today. Good luck preparing for that!

  1. Traditional safe investments have lost interest

It’s no longer enough to hold your savings steady in your bank account. While through most of the second half of the 20th century you could rack up more than 8% interest in a savings account or government bonds, current interest rates are below the 2% average yearly inflation rate. That means prices are increasing faster than your earnings.

After reading all this, it’s easy to feel down about your financial prospects. But everything has two sides. While now may be one of the easiest eras to fall behind, with a little extra effort, it’s also one of the easiest to get ahead.  There are a ton of great benefits of investing today as well as more options than ever before. Here’s a couple great reasons to invest why you should invest today.

Reach your goals

Sure you can throw 200 dollars into a sock under your bed every month, but why do that when you know the S&P 500 has averaged around 44% over the past few years? If you’d chucked in $10,000 in 2015 you’d have almost $5,000 more than you started with today in 2020.

Investing lets you save money at a much faster rate so you can do the things you’ve been dreaming of. You can buy that new car or pay for your kids’ college down the line.

Most people don’t want to work forever and you’re probably no exception. Having a long-term savings plan on the back-burner is also a great way to prepare for retirement.

There’s also many short-term benefits of investing too.

Always be prepared

Large chunks of growing, disposal income prepares you for the unexpected.

Data shows 41% of working-age Americans cannot pay their medical bills or are currently paying off medical-related debt (2). The fear of paying for medicare often keeps Americans out of the hospital and ultimately can have a negative effect on their health when they don’t attend regular checkups. This results in more medical bills down the line.

By keeping money in some liquid investments, you can rest easy knowing that if you have a medical emergency or other financial crisis it’s not coming out of your day-to-day living funds.

Have better relationships

This one may take you by surprise. Did you know talking about investing could strengthen your relationships?

Studies show financial problems may be one of the biggest relationship killers (1). Ironically, 44% of Americans have said they’d rather talk about politics or religion before personal finance with relatives.

Debt traps like student loans are one of the top issues affecting young Americans today. And debt takes a real toll. Studies show that up to 80% of divorcees list financial disputes as a leading factor for their separation. With the average US household holding $137,063 in debt, some extra income from investments could go a long way in keeping the peace at home.

Get a new hobby

Investing isn’t just something to do, it can be a lifestyle. You probably know quite a few people who’ve made their entire career off it. Investing, like any other skill is something you get better at with practice. You may actually enjoy the research required and the knowledge you gain from investing. You’re in good company too, today there are hundreds of communities online filled with investors new and old offering free advice to investors like you.

Feel good

Here’s the biggest reason why investing is important. Not only does investing help you avoid the pitfalls of poor financial health, but it also might improve your mood. You can rest easy knowing your money is growing even while you sleep and your job isn’t your only source of income. We know many of our customers say that when they watch their money increase every second in our instant access account they feel great.

Sources:

  1. https://advisor.visualcapitalist.com/financial-wellness-during-crisis/
  2. https://www.commonwealthfund.org/publications/newsletter-article/survey-79-million-americans-have-problems-medical-bills-or-debt

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Peter Upton

Peter Upton

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