Which is the best investment option? Option 1: Savings account

Which is the best investment option? Let’s do an exercise to figure it out:
If I gave you $100,000, what would you do with it?

  1. Put it into a savings account
  2. Buy shares
  3. Buy one property @ 80% mortgage
  4. Buy two properties @ maximum % mortgage

How would you use $100,000 towards creating wealth for your future? I’ll walk you through these few options and compare the results over 10 years to see which one performs the best. You might be surprised!

A lot of people might choose to put it on their mortgage. Some people might take a much-needed holiday. But since you’re reading this book, you probably already know there’s a better way… investing! So, where should you invest?

Option 1: Savings account
Let’s say you put the $100,000 into a savings account that earns 3% interest. Bearing in mind that you pay tax on the interest you earn. Let’s do the math: $100,000 with 3% interest, compounding yearly for 10 years comes to $134,392. So you will technically earn $34,392.

Results of saving $100,000 over 10 years.

Putting your money into a savings account is like doing nothing with it. Since you are taxed on the interest and since inflation is higher than the interest earned on savings, it’s like keeping your money in a bucket that has a hole in the bottom. Your money is slowly leaking onto the ground. In other words, the cost of living is going up faster than the interest you can earn. You probably worked really hard for your savings so rather do something with it. Your savings account is simply losing you money.

Next, let’s look at Option 2 – Shares.

~Daimien Patterson


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Legal Disclaimer: This information ('the information') is presented for illustrative and educational purposes only. It is not presented nor should it be treated as real estate advice, legal advice, investment advice, or tax advice. All investments involve risk and potential loss of money. If you require advice in any of these fields you should contact a suitably qualified professional to assist and advise you. Your personal individual financial circumstances must be taken into account before you make any investment decision. We urge you to do this in conjunction with a suitably qualified professional. Daimien Patterson, IntegrityX Enterprises Pty Ltd, and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers do not guarantee your past, present or future investment results whether based on this information or otherwise. Daimien Patterson, IntegrityX Enterprises Pty Ltd and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers disclaim all liability for your purchase decisions. You should do your own independent due diligence and seek the advice of qualified advisors before making any investment decision.