For instance, if you take $100 a week and put it into the bank for the next 10 years you might get a 2% return (on average).
At the end of that 10 years, you'll have $58,000.
Great.
But if you invested that same money, you'd have just over $78,600 in the New Zealand stock exchange.
That's over $20k extra, which is 36% more.
Over time that difference compounds and you'll often have more money if you invest in assets. That's things like shares and property.
Yes, the price of assets go up and down more than just having your money in the bank.
But you'll often be ahead when you model it out over the long term.
Look at the last 10 years in history.
Yes, there are some drastic market drops. For instance, when Covid hit the share market dropped drastically.
But you are still ahead of where you would've been if you were just putting that money into savings.