Why invest your money

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Starting with what will help you find out where to invest your money start to look at the, Compound Interest is the biggest part of investing. With compound interest, you earn interest on the money you save and on the interest that money earns. Over time, even a small amount of savings can add up to big money.

“If you buy a $1 candy bar every day, it adds up to $365 a year. Put that $365 into an investment that earns 5% a year, and it would grow to $465.84 by the end of five years. By the end of 30 years, you would have $1,577.50.”

All investments involve some degree of risk.

If you intend to purchase securities such as stocks, bonds, or funds, it's important that you understand that you could lose some or all of your money. At FDIC-insured banks and NCUA-insured credit unions, the money you invest in securities is not insured. You could lose your money, which invested. That’s true even if you purchase the securities through a bank.

The reward for taking on risk is the potential for a good investment return. If you have a financial goal with a long-term investment, you may make more money by investing in higher-risk dollar amounts, such as stocks or bonds. The concern for people investing in cash is inflation risk, which is the risk that inflation will outpace and amount of money you will earn, in other words you will end up losing money.