When you earn a dollar, you can either spend it or save it. But money is a lot like a seed. You can either eat that seed right away, or you can plant it. When you plant it, it turns into more dollars down the road. Unless there’s nothing else to eat, it always makes sense to plant that dollar and turn it into more wealth. That way, you can turn money into a tool for building more wealth.
However, taking that dollar and stashing it in a savings account isn’t going to grow your wealth. Saving is a good first step, but it’s like stashing a seed in the grain warehouse. It’s relatively safe and you can bring it back out to eat during tough times, but while your seeds are sitting there, they can rot, get eaten by vermin, and otherwise deplete, slowly but surely. Money rots over time too. Through inflation, the purchasing power of a dollar shrinks a little bit every day. Prices go up but your wealth doesn’t grow.
Growing Your Wealth and Risk
Saving is just the first step in growing your wealth; the next step is investing it, but a lot of people worry that investing in stocks or other financial products puts their money at risk. They’re not wrong. Although stock markets have historically increased in value over time as a whole, markets periodically go through steep corrections, and individual companies whose stocks you buy do not have the same overall success.
High-growth investments like stocks are a necessary part of growing your wealth, especially for major savings goals like retirement, which you just can’t achieve by setting money aside each month for the rest of your working life. But that doesn’t mean you should be all-in on stocks. Assets like gold and silver resist inflation and carry lower risks than stocks.
Risk-Free Ways to Really Save
One way to backstop the risks of higher-growth investments is saving your money with silver and gold. Precious metals are in an interesting position today. Although gold and silver no longer back today’s currencies, they’re still considered “real money” by many investors. What’s more, as long as you consider and explore which is the best gold IRA company to invest gold in, you’ll be good to go.
That attitude is reflected in gold and silver prices during times of hyper-inflation and stock crashes. When investors lose faith in the U.S. dollar, they choose gold and silver to backup their wealth.
Gold and silver are inflation-proof assets. A dollar invested in silver is a dollar that increases in value over time. It may not enjoy the dividends or price growth of stocks, but it’s low risk – lower than keeping your money in the bank.
Silver bullion is also easy to purchase, even easier than mutual funds or stocks. All you have to do is buy silver bullion online and find a way store the metal: in a personal safe, at the bank, or in third-party storage.
Growing Your Money Slowly
Investing in gold and silver bullion is a way to preserve your wealth and grow money slowly. Used in conjunction with a more aggressive, pro-risk approach, you can avoid the loss of purchasing power your savings account suffers and really experience growth in your personal savings.