Keeping money under the mattress may seem like a safe and secure way to protect your money, but in reality, it is not a wise investment strategy. Here are some reasons why you should not keep your money under your mattress and instead invest it
Inflation
Inflation can reduce the value of your money over time. If you keep your money under your mattress, it will not earn any interest and will lose value due to inflation. On the other hand, by investing your money, you can earn returns that can help you keep pace with inflation.
Missed investment opportunities
By keeping your money under the mattress, you are missing out on potential investment opportunities that could provide higher returns. For example, investing in stocks, bonds, or real estate can provide greater long-term returns than just storing your money at home.
Security Risks
Keeping a large amount of cash at home can also make you vulnerable to theft, fire, or other unexpected events. Investing your money in a diversified portfolio of assets, on the other hand, can help protect you against unforeseen risks.
Limited Access to Financial Services
By keeping your money at home, you may limit your access to financial services such as loans, credit cards, and other financial products. Investing your money can help you build a credit history and establish a relationship with financial institutions, which can be helpful in the long run.
Missed Opportunity To Save For Retirement
Finally, by not investing your money, you may miss the opportunity to save for retirement. Investing in a retirement account such as an IRA or 401(k) can provide tax advantages and help you save for your future.
Keeping money under the mattress is not a wise investment strategy. By investing your money, you can protect yourself against inflation, take advantage of investment opportunities, reduce security risks, access financial services, and save for retirement. If you're unsure about how to get started with investing, seek advice from a financial advisor or do your research to find the best investment options for your needs.