Times have changed. With a saving account alone, you lose money, even when the interest rates are rising, because inflation and interest rates move together. It eats up your profit. You may have more in your bank account, but things cost more.
A savings account is perfect for the money you need to pay your bills, but if you want to save for the future, you better start investing. Investing in good companies benefits you, the company, and society.
You can invest in many things, in stocks, in funds, in bonds property, metals, commodities, etc. But it is important to know some important, basic rules to minimize your risk.
When you decide to learn more about investing, you will be surprised how many interesting companies exist.
Many companies have innovative ideas, like Apple with its first smartphone, Google with its first search engine, Tesla with its first electric car, or Nestle with their first coffee capsules are just some examples. You will have to decide what companies you want to support with your money. Many innovations are good for society, others are not, and you will decide where to invest.
Investing allows you to keep up with inflation so that your savings aren’t worth less. But it also allows you to take part in the economy, not only as a consumer but also as a co-owner.
With greater investment, companies have more leverage to invest in innovative ideas and people. Society is facing many challenges that must be addressed, that is climate change, inequality, demographic changes, distribution of natural resources, etc. Companies innovating to address these challenges, whether big or small, need your support to make a dramatic difference.
With yeekatee, it is fun to get to know “your” favorite companies, learn more about them, and find all the information you need to make an informed decision on what to buy and what to avoid.
Written by Therese Faessler, Founder of invested.ch and SFTA Head of Financial Literacy