Why Investing Your Wealth is Important?
Do you think you will
become rich by keeping your capital locked in a bank? Well
answer is quite simple 'NO'. So if you want to make your money
work for you, you need to take it out and invest it somewhere.
Investing has become increasingly important over the years, as the inflation rate and increasing prices of consumer goods are knocking down many people. People want to insure their futures, and they know that if they depend only on their regular monthly salary, and in some cases retirement benefits, that they may be in for a rude awakening when they no longer have the ability to earn a steady income. Investing is the answer to the unknowns of the future.
You may have been saving money in a low interest savings account over the years. Now, you want to see that money grow at a faster pace. Perhaps you’ve inherited money or realized some other type of windfall, and you need a way to make that money grow. Again, investing is the answer.
Investing is also a way of attaining the things that you want, such as a new home, a college education for your children, or expensive ‘toys.’, or a new model car etc. Of course, your financial goals will determine what type of investing you do.
If you want or need to make a lot of money fast, you would be more interested in higher risk investing, which will give you a larger return in a shorter amount of time. If you are saving for something in the far off future, such as retirement, you would want to make safer investments that grow over a longer period of time.
The overall purpose of investing is to create wealth and security, over a period of time. It is important to remember that you will not always be able to earn an income… you will eventually have to retire.
You also cannot count fully on the pension and gratuity alone. When the time comes it may not do what you expect it to do. So, again, investing is the key to insuring your own financial future, but you must make smart investments.
Hoarding your wealth in a box is not a useful and intelligent use of the wealth you have. As you grow with age, similarly your money should grow with you. Your daily life requirements are increasing day by day, your children are growing, you need to improve your living standard in the coming years. So only wise investing is the answer to everything, which will not keep you behind others.
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