Why should I invest? This is the question on a lot of people’s minds. In this article, we will be answering this question by providing practical reasons why you must invest.
Investing is a way to preserve your future by making your money work for you. It is vital for that is how you build financial security and grow your wealth. It is also a means of additional income ahead of your retirement. Investment is the backbone of your financial future.
According to the Oxford Dictionary, investment is the action or process of putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving profit.
Investment is primarily for profit and to grow your capital. If you are trying to build wealth, don’t just keep your money in the bank lying in your bank account, but invest your money and gain profits from your investment.
Here are three reasons why you must invest
It allows you to beat inflation.
Inflation is the increase in the cost of items and living that happens over time and causes money to lose value. Money keeps declining in value as inflation eats away at money’s purchasing power and value.
Investing is a way to preserve the purchasing power of your capital. The current struggle of the Nigerian currency against the dollar is enough reason to invest. If you fail to invest, you will lose your money over time.
Achieve your Financial Goal
Investing is one key way to reach high financial goals. As you grow, your financial needs and wants increase, and a new financial requirement exists.
You need money for a car, house, business capital, and retirement support. Having an investment makes it easier to reach these goals and achieve them. You can spend the profits from your investment on this, and you will be able to have financial security for retirement.
Higher Returns on Investments
Every investment has a return rate. The rate of returns determines the level of money you will earn. To earn more money, you need to invest your money in place of a high rate of return.
You can invest in stocks and earn through dividends and capital gain. Real estate is also a very great investment with high returns. You can earn capital gains and rental income.
Investing in bonds is another high return with a regular payout given at a predetermined period. Investment increases the rate of income.
Investment is not a get-rich-quick scheme.
It is a deliberate process that takes a lot of research and effort. Investing can be in different forms. You can invest in a new venture, stock bond, exchange trading, or real estate. There is a wide range of investing opportunities.
You are not too young or too old to invest, and it is not too late to invest. Investing is a very effective way to grow your income and build wealth.
