So you work hard, you earn your money, save your money, only to find out that "Hey, it's not enough,” or worse still, "It's worth less today than it was yesterday". In hint, that's inflation.
Someone once told me that if you don't make your money work hard for you, you're forever going to be working for money.
Let's face it. You won't be young forever.
It'll come to a point where you can't work anymore.
Because (a) too tired, (b) you're too tired, and (c) you're too tired, which is why we call it retirement.
And so we save our money so that we can retire.
So let's look at how we can grow our money. If you leave your money in the bank, you might probably get 1-2% per annum. Hooray!
That's not too bad, right? Wrong.
Think about it this way.
A cup of coffee today may cost you $2 today. 20 years ago, it was 50 cents.
That's inflation for you.
Hooray! I'm getting about 3%. That's not too bad, right?
In 20 years time, that cup of coffee is not going to be $2 it's probably gonna be $4.
Some people have said, "Afiq, you should be trading stocks. Look at me. I buy and I sell and I buy and I sell" and I tell people, "Hey, I'm not cut out for this."
I can't take the stress of the stock market swinging up and down. It's really, really stressful. Just look at any article on trading, you'll realize that 80% of traders fail.
So how else can I do it? I know that most people can't beat the market.
Invest in the entire market. And that's what we call passive investing.
We'll look into that in our next blogpost.
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