8 Investment Mistakes That Will Make You Broke

7) Only Keep a Checking and Savings Account

A checking and savings account are great, and absolutely essential to everyday living. However, your checking and savings account should not be your only focus of saving. For many people, money in a savings account, is to them investing. It is the thought of, I have immediate access to my money, and, my money does not fluctuate. This feeling of safety is in many ways harming your future savings.

First off, your money will grow slowly, if at all. Secondly, it is likely inflation will outpace your savings account. Meaning that the money you have in the bank today will be less valuable than that same money in ten years.

So, while a savings account is a good back-up to your checking, a safe way to save for short-term goals, and a productive tool to teach you how to put money aside, it is not a great long term investment if you want to grow your money.