B O S S Y M O N E Y “Pay yourself first. ” by Maya Johnson

"Saving is no longer an adequate way to build nor maintain wealth. "

I know almost everyone has heard the popular phrase but how many people understand what it really means? As a millennial, myself, I understand that the economic climate is much different than the one my parents endured. With that being the case, I must adapt. Saving for a rainy day may have worked for my grandparents but it will not provide the financial security needed in today ’s uncertain economy. According to the FDIC, the national average interest rate on a savings account is currently 0.05% APY. The inflation rate in 2019, according to Statista.com, was 1.81%. To provide context; this means that for every $1000.00 in a savings account, you will earn $5.00 interest at the end of the year but that same $1000.00 will have the spending power of $981.90 due to losing $18.10 in power due to inflation. In plain language—you are losing money by keeping it in savings accounts.

Saving is no longer an adequate way to build nor maintain wealth.

B O S S Y M O N E Y

"There is no excuse not to make your hardearned money work as hard for you. "

Investing your money in the right vehicles is the only way to get the most “bang for your buck. ” Millennials should be apprehensive about the stock market because we have lived through a recession, a housing crash, and the looming COVID-19. Some even think of investing in the stock market as gambling.

An understanding of the facts will dispel those fears. The facts are this: The average stock market return for 10 years is 9.2%, according to Goldman Sachs data for the past 140 years. The S&P 500 had historically outperformed the general market and yields an average annual return of 13.6%. How does that measure up to your savings account? The internet is flooded with trading gurus and expensive workshops; but trading and investing are not the same. Investing is safe, but not without risk, and strategies exist for every goal and every personality type. Any millennial that can use a smart phone can become a savvy investor. There are apps that lets users buy shares of companies right from their phone.

There are also apps that act as brokerages and allows users to invest completely hands-free. There are apps that even allows users to invest their spare change. There is no excuse not to make your hard-earned money work as hard for you. Take control of your future by investing in it. It is never too late to start thinking ahead; your future self will thank you. Meet me in the future.