Take it from Ray Dalio, a billionaire investor. He does not believe that keeping cash is a safe place for your hard-earned money. Despite the market’s volatility these days, he still bet that investing is the way to go.
Keeping cash is keeping it in your home or putting it in a savings account. Interest rates these days in Philippine banks is less than 1% a year (ranging from 0.50 to 0.75).
Inflation rate last September is 4.8%. Most likely, it will average at 4.5% this year.
If you are not doing anything to beat inflation by keeping the cash to yourself or leaving it idle in banks, you will be shocked to know that its purchasing power will be diminished gradually.
So what do you need to do?
Find an investment instrument where your money will earn higher than 4.5% (inflation rate).
Don’t know anything about investment?
Send me a private message and let’s talk.
image source: cnbc/IG