WHAT DOES IT MEAN TO INVEST?
To Invest is to allocate your money to different assets with an expectation of growth in the future. Buying an asset gives you the right to enjoy the income generated out of it and the appreciation in the value of an asset over a period of time. for example,
– when you buy a residential property the rental income generated + the appreciation in the value of property will be your growth in investments
-when you buy stocks, you get dividend as an income + the appreciation in the value of stock will be your growth in investments
WHY TO INVEST?
Investment is the foundation of financial security, it will help you reach your financial goals. here are our top 5 reasons why you should invest-
1.Return on investment–
The money invested will generate income and help you grow your funds. There will also be appreciation in the value of an asset over a period of time. Such extra income will be helpful to meet your daily expense or some extra handy money for your leisure.
2.Financial Goals–
The invested amount will help you achieve your financial goals. Good financial strategies will help you pool a sum of money which can be used in specific future events or needs. every penny not spent and invested today will get you closer to your financial goals.
3.Tax Benefits–
Not Just good returns, investments can also help you save the tax amount which you otherwise would have ended up paying. many schemes like 401k, SEP, IRA etc. gives you deduction and other benefits which will help you build your capital in a systematic and efficient manner.
4.Secured Future–
Investments are the foundation of secured future. the invested money will give you a grown pooled amount of money which will be a blessing in living a tension free retirement life. one can also plan to retire early in life with good investment plans. the hustle to work and arrange funds is not something one looks forward in the later part of life.
5.Coping up with Inflation–
Inflation is the general increase in prices over the period of time. with your invested money the returns will help you match the difference which otherwise would have been extra burden on your pocket. for example if inflation rate is 2% and your average rate of return on investments in 5% , not only you will beat the inflation but also have returns to match your goals.
“INVESTING IS LAYING OUT MONEY NOW TO GET MORE MONEY BACK IN FUTURE”
-WARREN BUFFET
