and then another big reason that you really need to consider investing as a big part of your strategy is the concept of inflation. Pretty basic situation of $100 does not buy you as much today as it did back in 1999 or in 1989. One of the ways I like to think about it is your grandparents or great grandparents, depending on age, could probably take a family of four out to a fairly nice dinner for about five bucks in the 19 fifties. Good luck getting a decent meal at a fast food restaurant these days. For $5. That's inflation. It's just the natural rise in the price of goods over time. What that also means is that your purchasing power is going toe erode a little bit every single year. Generally, the rule of thumb that gets used is 2% changes a little bit, but that is the rule of thumb that people like to use that every year. Inflation is about 2% so if your money is not earning at least 2% every single year, you can't buy as much this year as you did last year. with the same amount of ...
money and this is another reason that investing is critical is it can help you keep pace or beat inflation. Hopefully, beat is the goal.
<b><p dir="ltr"><b></b></p><p dir="ltr">Erin Lowry is the author of Broke Millennial: Stop Scraping By and Get Your Financial Life Together and Broke Millennial Takes On Investing: A Beginner’s Guide to Leveling-Up Your Money.</p></b>
Wonderful course, she explains the basics of investment and why it is important, for a beginner that's the best class ever.
Straight to the point basic investment advice. I would say following her conservative strategy is great for the long haul of low-risk saving for retirement. And a great way to ease into investing without worrying about losing your sbirt.