Learn how to break money out of prison
Why the generic bank account is a bad investment Banks will only give you a low interest rate and at times may even charge fees. It is much more beneficial to invest extra money outside of your emergency fund into some type of higher yielding account. Banks may yield 5% if you are lucky and even some stocks will only get you 1%-8%. What I don’t understand is why people are fine with this low growth when you could be making 10% or more. Even the SP500 itself yields about 10%. Cash example: You have 10k in either the bank or in a mutual fund making 5% in the bank and 10% in the mutual fund. Bank per year=$500. Mutual fund per year=$1000. The only advantage to having money in the bank is that you have a guarantee of 250k from the government if the bank is robbed. Liquidity should…
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