Our Finance Guide
  • Home
  • Loans
  • Tax
  • Credit Cards
  • Investing
No Result
View All Result
  • Home
  • Loans
  • Tax
  • Credit Cards
  • Investing
No Result
View All Result
Our Finance Guide
No Result
View All Result
Home Investing

News Flash: Investing Won’t Grow Your Wealth Unless You Do These 3 Things

admin by admin
August 31, 2021
in Investing
0
New To Investing? Here Are Some Common Mistakes To Avoid And Tips To Follow

If you’ve been a fan of The Motley Fool for any length of time, you know we love investing. It’s the best way to grow your wealth over the long term, but it’s not magic. You still have to take the right steps to set yourself up for success. If you don’t make the following essential moves, you’re not going to be very happy with your results.

1. Actually investing

Investing is intimidating for many, because there is a risk of loss. But what most people don’t realize is there’s also a risk to not investing. There’s no savings account on earth that can match the stock market’s average annual return. And since the inflation rate often exceeds a typical savings account’s annual percentage yield, you could actually lose money by being too conservative with your finances and locking your money up in one of these low-yield accounts.

Related articles

U.S. ready to help Mexico finance solar plans, Lopez Obrador says

These Are the Best Ways to Finance a Car Purchase in 2023

If you take the right steps, including diversifying your money and choosing the right asset allocation, you can grow your wealth through investing while reducing your risk of catastrophic loss. That’s not to say you’ll never lose money — ups and downs are a natural part of investing. But as long as you plan to hold your investments for at least five years, the stock market’s daily fluctuations shouldn’t bother you too much.

It’s worth noting that just putting your money into an investment account doesn’t mean you’re actually investing it. You need to use your funds to purchase stocks, bonds, mutual funds, exchange-traded funds (ETFs), or other securities. Otherwise, you just have a pile of cash sitting in an investment account where it’s not going to earn any interest.

2. Taking care of high-interest debt first

High-interest credit card or payday-loan debt often costs more than people typically earn on their investments. Some credit cards have annual percentage rates (APRs) exceeding 30%, while payday loans can have APRs of 100% or greater. That means your payday loan debt could double in a single year.

The stock market, on the other hand, has only earned a 30% return in five of the last 30 years, and sometimes, it has experienced losses. On average, you can expect about a 10% annual return, and that’s if you invest all of your money in stocks. If you have some bonds mixed in there, you’re probably looking at a slightly lower return. Unless you’re lucky enough to invest in a company whose stock skyrockets overnight, you’re probably not going to earn enough on your investments in a year to make up for what you’re losing in interest on credit card or payday-loan debt.

 

Read more…

admin

admin

Related Posts

U.S. ready to help Mexico finance solar plans, Lopez Obrador says

MEXICO CITY, Dec 20 (Reuters) - The United States is offering to help Mexico with loans to finance planned solar power stations in the northern state...

These Are the Best Ways to Finance a Car Purchase in 2023

Car financing is an important part of buying a vehicle and can be the difference between getting your ideal car and settling for something less. A...

SEVEN financial predictions for the year ahead

1. High inflation is not going awayWe are heading into major macroeconomic headwinds and these winds won’t die down for the foreseeable future. Inflation is being...

As funds run dry, Idaho Housing and Finance will soon pause emergency rental assistance program

The Idaho Housing and Finance Association plans to pause applications for emergency rental assistance funds on Dec. 29 because federal funds are quickly running dry for...

4 Tips for investing during the crypto market instability

The crypto market is infamously known for its extreme instability. As a matter of fact. the term volatile” has almost become synonymous with the crypto industry...

Next Post
Sallie Mae Responds on the Mounting Federal Student-Loan Problem

Biden has canceled $9.5 billion in student loan debt yet forgiveness for all isn't necessarily coming

Governor Lamont Reminds Residents That Connecticut’s 2021 Sales Tax Free Week Runs August 15th to 21st

Some donors may get a smaller than expected tax deduction for 2021 charitable gifts

Secured credit cards: How they work and why they’re easier to get

Secured credit cards: How they work and why they're easier to get

No Result
View All Result

Subscribe Us

By clicking subscribe, I authorize: (1) Our Finance Guide to use and share my information in accordance with its Terms of Service and Privacy Policy, and (2) Our Finance Guide or third-party companies, including Our Finance Guide’s business partners, to contact me by email with offers for goods and services at the email address provided. Please note that the information you have provided to us may be supplemented with additional information obtained from other sources.

RECOMMENDED

After Credit Cards, Which Debt Should You Pay?
Credit Cards

After Credit Cards, Which Debt Should You Pay?

Uncategorized

Dear Penny: Am I Wrong if I Don’t Leave My Family an Inheritance?

CATEGORIES

  • Credit Cards
  • Investing
  • Loans
  • Tax
  • Uncategorized

Subscribe Us

By clicking subscribe, I authorize: (1) Our Finance Guide to use and share my information in accordance with its Terms of Service and Privacy Policy, and (2) Our Finance Guide or third-party companies, including Our Finance Guide’s business partners, to contact me by email with offers for goods and services at the email address provided. Please note that the information you have provided to us may be supplemented with additional information obtained from other sources.

© 2022 Our Finance Guide, All Rights Reserved.

  • Contact Us
  • Privacy Policy
  • Terms Of Service
  • Unsubscribe
No Result
View All Result
  • Home
  • Loans
  • Tax
  • Credit Cards
  • Investing

© 2022 Our Finance Guide, All Rights Reserved.