Stashing Your Cash: Mattress or Market? 5.00 / 5 (100.00%) 1 vote

If you are interested in growing your money for long-term goals such as purchasing a home or for retirement, you are probably looking for a way to grow your assets without a lot of risk. What many people like you have found over the years is that putting money in a traditional savings account does not amount to much over time. The minimal interest that most savings accounts pay wont come close to providing extra income that you might need for your long-term goals. You might consider the question: Stashing your cash: mattress or market?

What exactly does Stashing your cash: mattress or market mean? Well, in times past some people protected their money by keeping it at home. They would hide it under a mattress, bury it in the backyard or place it under the house for safekeeping. This method of putting money away for safekeeping works if you dont care about earning interest on your money. However, you work hard for your money, and you want that money to work for you. Putting money in a traditional savings account is the same as stashing your cash in or under your mattresswhen you take it out, you will have essentially the same amount that you put in.

A traditional savings account is a good place to build up some cash for a rainy day. For example, if you do not have a lot of money to save, you might open a savings account to help you put some money away for emergencies such as car repairs or a new washer or dryer. However, if you dont have those emergencies and the money in that account continues to build, it is time to think about moving it into a program that will help you earn some additional money. This is the difference between saving and investing.

Many people are taught to save, and some are able to do it well. However, what they dont realize is that they could triple or quadruple their assets by putting that money to work in investments.

Investing does not mean that you have to put all of your money at risk by purchasing stocks that tend to go up and down depending on how the markets are reacting to current events. This is one of the aspects of investing that may cause some to continue stashing their money in low interest accounts.

What you need to know if that there are numerous products, some conservative and some aggressive that will help you grow your money. These include Certificates of Deposit (CDs), IRAs, stocks, bonds, mutual funds, ETFs or Exchange-Traded Funds, and employer sponsored investment opportunities like 401-K programs. The key is to become educated about what each of these investment vehicles offers and devise an investment strategy that will reduce your risk of losses. To get started, make an appointment with a qualified financial services professional who can explain the benefits and limitations of these products.

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