cash

Be a Grower, Not a Stower

How your savings account is costing you 10% per year

You're probably thinking “Costing me 10%?! My high yield savings account is making me 1%!”

Think again. If you are only saving, not investing, then YES, your savings account IS costing you ~10% per year.

Historically, the stock market has returned an average of 10% annually. So you may assume that the 10% you're missing out on refers entirely to investment earnings. However, that doesn't accurately portray what's really going on. In fact, there are two factors at play that, combined, are costing you 10%: Inflation and Opportunity Cost.