Cash is useless!
Being in possession of cash gives you a false sense of security of richness due to its dwindling nature. Cash always loses value over time due to inflation. The way modern economics works and how the central banks tweak their policies is to always have some inflation in modern society. Just letting your cash stay in a bank savings account and accumulate interest is also not enough for a secure financial future, as these savings rates are almost always paltry and lag the inflation rates. It is important to look to other ways to grow your coffers more than the inflation rate – which is where investing comes into play.
Income can be achieved in two ways; usually classified as active and passive income, the latter of which is the goal of investing.
- Active Income – You work hard and you are paid in exchange of your time in providing the goods or services.
- Passive Income : The money generated through investing can involve two methodologies.
- You buy something that increases in value over time
- You make your money work for you to generate more money
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Disclaimer: The information provided here is for educational purposes only. All opinions here are my personal opinions and should not be taken as financial advice. I am not qualified to be a financial advisor. Always consult with your financial advisor before investing in any of the companies mentioned on this blog.