MONEY TIP OF THE MONTH – Your savings will erode if you’re not investing
If your money isn’t growing, it is losing purchasing power to inflation, the rise of prices over time. For instance, you’d need $288 in 2014 to buy the same stuff you could get for $100 in 1980, according to this Bureau of Labor Statistics inflation calculator.
Inflation has been about 3 percent a year or less for the past 20 years. The Federal Reserve Bank suggests that your savings must earn a minimum of 3 percent a year just to retain their current value.