Dave Ramsey once said I would not pre-pay. I would invest instead and let the investments cover it. When you want to keep your money for a long time without using it, the best way to go is to invest that money in order to gain interest. Here is why we should invest instead of saving.
Your savings will not be enough to retire.
The question is, will your income during your retirement be enough? This is the reason why you have to invest in order to multiply your income in the years to come. Investments will grow your wealth to have enough to spend later and you can even retire by the age of 40 or 50.This is because the money you are saving will lose its value to inflation and this will serve as a loss to you.
If you stick to cash you will lose money to inflation.
Inflation rises as the cost of living becomes high. Savings will not yield enough interest as compared to investments. Once your inflation rises your cash will