Part 4/8:
Combatting Inflation: The first goal should be to grow your savings faster than inflation. Over time, the real value of money decreases, akin to an invisible tax on your savings. A failure to invest means your money will diminish in purchasing power, leaving you unable to sustain your living standards as prices rise.
Multiplying Your Investment: The second goal is straightforward—investing should help you put away money now and retrieve more later. The desired outcome of putting money into investments is always to earn a return greater than the initial amount.
Age Matters: The Importance of Timely Decision Making
Next, let’s take a closer look at how investment returns can vary based on age.