Why You Need to Invest Your Money—Because Inflation Is Stealing from Your Savings
Have you ever heard your granny talk about how, when she was young, she could do so much with just $10?
She could buy groceries for the week, go to the movies, and still have change left over. Fast forward to today, and $10 barely covers a quick lunch. That’s inflation.
Inflation means that over time, the cost of goods and services rises, making your money worth less in the future than it is today. If inflation averages 3% per year, in just 10 years, your money loses almost 30% of its purchasing power. What once could buy a full cart of groceries might now only fill half of it.
So if you’ve ever felt like things just keep getting more expensive, you’re not imagining it—it’s real. Now think about what will happen to the savings you’re setting aside "for the future." Inflation is a slow thief that takes from you without you realizing—until you do. And that’s why saving alone is not enough. You need to make your money work for you, and investing is the way to do it.
Inflation: The Invisible Threat to Your Savings
Picture this: You’ve been diligently saving for years, putting away money in a savings account like your parents told you. You feel secure knowing you have a nice cushion of cash. But then, 20 years later, you go to buy groceries, book a vacation, or even just pay your electricity bill, and everything is noticeably more expensive. The money you’ve worked so hard to save doesn’t stretch as far as it used to. That’s inflation at work, quietly eroding your financial security.
If your money is just sitting in a traditional savings account earning close to 0% interest, you are actually losing money in real terms. While it may feel safe sitting there, the reality is that inflation is slowly chipping away at it.
Why Investing Is the Solution
Investing helps your money grow at a rate that can outpace inflation. Instead of sitting idle, your money has the potential to multiply over time. Here’s how:
Compound Growth: When you invest, your money earns returns, and over time, those returns generate even more returns. This compounding effect allows even small investments to grow significantly over the years. At first, the progress may seem slow, but over time, the growth accelerates exponentially. Did you know that Warren Buffett started investing at 14, yet 99% of his fortune was made after he turned 50? That’s the true power of compounding!
Higher Potential Returns: While savings accounts offer interest rates close to zero, investments like stocks, bonds, or index funds have historically provided much higher returns over the long term.
Building Long-Term Wealth: Investing isn’t about getting rich overnight; it’s about making sure that in 10, 20, or 30 years, you have enough to maintain or improve your quality of life. Don't be misled by claims that investing is extremely risky. Those who invest short term looking for quick gains aren’t investing—they're gambling, and yes, that comes with a great risk.
“But Investing Feels Scary” – Let’s Break That Mindset
Many women shy away from investing because it seems risky, confusing, or like something only ‘finance people’ do. But the truth is, investing isn’t just for Wall Street pros—it’s for you, for your future, and for your family’s security. And it doesn’t have to be complicated (remember, we’re talking about long-term investing, not short-term gambling). In fact, studies show that women tend to outperform men in investing because we stick to a strategy, avoid unnecessary risks, and make more calculated decisions.
So what now?
1️⃣ Educate yourself: Take it one step at a time. Read articles, watch videos, or even join a group of women learning to invest together. The more you understand, the more confident you’ll feel. Some great resources to start with include the Dow Janes, a community helping women invest wisely, "Clever Girl Finance" by Bola Sokunbi, which provides beginner-friendly financial advice, or "Women & Money" by Suze Orman. Look them up on Instagram or YouTube for accessible and relatable investing guidance.
2️⃣ Take action: Start small—you don’t need thousands of dollars to begin. Thanks to technology, you can start with as little as $50 using beginner-friendly investing apps. And remember that you don't need to know everything, start as soon as possible and keep learning as you go.
3️⃣ Diversify: You don’t have to put all your money into one stock. Index funds or ETFs (Exchange-Traded Funds) are great beginner options because they spread your investment across many companies, reducing risk. And remember that the market goes up and down in the short term, but long term, it has always grown—and that’s the game to play to tackle inflation.
The Cost of Doing Nothing
If you’re hesitant to invest, consider this: By keeping your money in savings, you are actually losing money to inflation every single year. The longer you wait, the more purchasing power you lose.
Investing is not about gambling—it’s about being smart with your financial future. It’s about making sure that your hard-earned money continues to have the same (or greater!) value in the future so that when you retire, or whenever you need it, you can do what you planned—not just half of it.
You don’t need to have it all figured out right now, but you do need to start.
However, before jumping into investing, make sure you’re in the right financial position.
First, focus on eliminating bad debt—those high-interest credit cards or loans that drain your resources. Then, set up an emergency fund to cover unexpected expenses. Once those are in place, you're ready to save for the future and start investing. Look into simple investing options, talk to someone who has experience, find a trusted Financial Advisor that understands and follows your goals, or read up on beginner investing strategies. Even one small step today can lead to significant financial growth in the future. And even if it’s just to lose the fear of taking the path, one little step can go a long way.
If this post resonated with you, don’t let it just be another thing you read and forget. It can change your future!
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