Investing your money wisely can help you preserve and grow your money over time. “The key benefit of investing is that your money will grow without you having to do any work,” says Jim Wang, founder of WalletHacks.com. “For decades, wealth has been created through the stock market because it can continue to grow without your direct intervention.”
Historically, investing has been a great way to keep ahead of inflation and its effect on your savings. Financial planning software will often factor in about 3-4% annual inflation3-4% annual inflation to align with historical averages, while the S&P 500’s annual return has been about 10% over time. Of course, past performance does not guarantee future gains.