If you're afraid to invest in the stock market, do this calculation to see how much money you're losing out on

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If you're afraid to invest in the stock market, do this calculation to see how much money you're losing out on. (via CNBCMakeIt)

tells CNBC Make It. It's not a life requirement. But you should understand what you're losing out on if you avoid the markets.

It's a shocking amount, Lowry says. "You're going to have to save so much more money to achieve the same goals because the market is helping do some of the work." That's because when you use a high-yield savings account or an investment account with higher returns, you putto work for you. When your money earns returns, those returns also generate their own earnings. It's a simple, but powerful way to grow money at a much faster rate than simply saving. The Securities and Exchange Commission has aThe longer you leave your savings in the market, the more compound interest can help because the returns continue to build on themselves.

That means if you invested $1,000 and the market lost 30%, your investment would be worth $700. And it may take you more than 13 months to recover the $300 you lost. But even if you're worried about the markets right now, simply pulling your money out may not be a great solution. In fact, experts say the best long-term game plan is to

 

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MakeIt No

MakeIt And Mitch Stinks.

MakeIt Oh I know this one...the calculation is to take your money. Now burn it. Now tell your friends investing is going, “hrmmm sorta ok...not too bad.” That’s the money you’re missing out on ... the imaginary money you tell your friends about so as not to be embarrassed about losses.

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