Stay Ahead Of Inflation
Over time, you’ll lose money if you don’t invest and increase your money. All of this is a result of inflation.
The general annual price increase and the resulting loss of your money’s purchasing power are both examples of inflation. Although inflation rates can vary greatly, traditionally, they have averaged around 3%.
You will keep well ahead of inflation and be able to grow the value of your money if you invest your money and, let’s say, achieve a rate of return of 7% on average.
However, if you don’t invest, neither your return on savings nor your salary rate will maintain pace. You would pay more for the things you buy, such as food, gas, and rental housing, and these increased costs would offset whatever extra money you made.