This is what I found on CNBC:
If you’re just saving and not investing, you’re setting yourself up to lose money in the long run. That’s a lesson Danielle Town, author of “Invested: How Warren Buffett and Charlie Munger Taught Me to Master My Mind, My Emotions, and My Money (with a Little Help from My Dad), ” learned the hard way.
When Town, then 34, found herself burnt out as a corporate attorney, she started brainstorming ways to retire faster. “I started to think, ‘What else can I do to support myself without being dependent on my salary?’” she tells CNBC Make It.
Her first instinct was to hoard as much cash as she possibly could.
“What I was doing was saving money, which I thought was genius,” she says. “And I felt very comfortable with my money, figuratively, under my mattress, just protected, and careful, and safe.”
But after talking with her father, author and investor Phil Town, she realized that keeping money long-term in a place where it wasn’t growing would leave her with less in the end, thanks to rising inflation rates.
“Now, I realize that to some people who know about financial stuff, this sounds ridiculous,” she says. “But I didn’t know anything about financial stuff. I knew inflation was a thing that felt very macroeconomic, but I had never connected it to my actual savings.”
In reality, she found, she was “losing money through doing nothing.”
Read more at CNBC.
Leave your comments below.