5 ways You Are Missing Out If You Keep Your Money In The Bank
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For many people, saving money means keeping them tucked away in a secure savings account.
This strategy guarantees that their cash is safe. However, it is stagnant.
Many people fail to realize that there are plenty of ways to utilize their money to create more money.
One example is by investing in the P2P market.
To give you a backgrounder, investing in P2P loans would require you to get your money from the bank and then invest in units of loans that are listed on the Biztech platform.
Yes, you can invest in P2P loans even if you are not a millionaire.
So if you have some amount of money tucked safely in one of your bank accounts, you can actually start investing today.
Win Against Inflation
Inflation is the increase in the price of
commodities.
The current inflation rate in Jamaica is 4.87% and is expected to keep rising over the next few years.
A One-piece KFC combo meal few years ago wouldn’t even cost you $150.
But right now, its price skyrocketed to double or even triple the said amount, $405 for a one piece combo the last time I checked.
You wouldn’t be able to buy the same quantity of goods for the same amount of money year after year, and that is inflation.
If you let your money sleep in a savings account for many years, its value depreciate over time.
While you would be able to withdraw money that you deposited in savings account, its purchasing power wouldn’t be the same.
Which brings us to the second point…
Make More Money
Investing in the P2P market will give you the opportunity to multiply your money so it can keep up and even beat inflation.
While it is true that banks can give you an average of less than 0% - 1% annual interest if you keep your money with them; that’s even lower than the inflation rate!
The P2P market can easily make your money grow by at least 8% or more with strategic investing techniques.
Maximize The Yielding Potential Of Your Money
When you invest in P2P Loans, you can take advantage of the magic of compounding interest.
This is the result of reinvesting your money rather than paying it out.
Over time, this interest on interest generates more money; without any huge effort on your part.
Earn Through Quarterly Payouts
Another way where you can earn passive income is through Payouts.
Payouts are issued every quarter and mirrors the interest earned on your units of loans that you have invested in.
You wouldn’t need to do anything special: as long as you choose to get payout every quarter, expect to receive the interest earned on your money as a means of passive income you can constantly look forward to.
Save More
Investing in P2P involves discipline and continued saving.
Because your money has more potential of growth compared to a savings account, you will be more determined to save more money.
Surround yourself with people who are also into P2P investing by subscribing to the blogs, following the social media pages, and you will be able to imbibe a frugal lifestyle because you know you are saving up for something that is profitable.
In Conclusion
There are still a lot of other advantages that investing in the P2P market have over saving in a bank account.
If you want to know more about this or would like to be acquainted with other P2P investors, join a Peer to Peer Investing community like Biztech.
You will be guided on how you can effectively grow your money through opening a P2P Account.
Register here
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