“What is an investment and why do we need it?” – is a question that not everyone would think of. Moreover, not everyone will be able to answer it. Unfortunately, most people do not know why to invest and how to do it, usually, people are wary of investing. The only popular tool they know for preserving their capital and increasing their savings is a bank deposit. Some people invest in real estate, believing it is the surest way not to lose money over the years. But recent years with the pandemic have shown that investing in real estate can not always be successful. To that end, you need to understand that an attitude toward money is comparable to leading a healthy lifestyle – you need to start early. What benefits will you get if you start investing now?
The Best Time To Invest Is Yesterday
Why does no one think about investing, and some have never even heard of it? The reason for this, in our opinion, is that by paying taxes, people are counting on the state to help them in their old age. By doing so, you can end up in poor old age. As you can see from the news, states are in no hurry to take care of their citizens. There is another category of people who have at least once thought about investing. But many potential investors, for fear of inflation, pandemics, and political tensions, put off entering the stock market. We’re ready to give you 5 reasons why you should start investing already. Let’s go!
5 Reasons To Invest
- Time is money
Time always plays into an investor’s hands. Why, you may ask? We explain, in investing there is such thing as compound interest. This interest is immediately charged on the amount invested and accumulates in the future. To apply compound interest, you must reinvest income. Let’s now look at how this works. Suppose you invested $100, the annual rate was 10% annually, a year later you already have $110 and a new (compound) interest is already accrued on $110. From this example, it is clear that compound interest is most effective over a long distance.
- Your money will not devalue
Every year the consumer basket gets more expensive. This means that the list of goods that you can buy today for a certain amount of money will shrink in a year. Prices are rising not only for food but also for gasoline, utility bills, etc. That is why it is unprofitable to keep the cash – inflation reduces its value.
- Buy and sell without any problems
The liquidity of investment means that the asset can be bought or sold quickly and then withdrawn from the brokerage account. You can’t do that, for example, if you buy an apartment or other real estate.
- The “saving money” habit emerges
Financial freedom means the ability to save and accumulate money. in small steps. Whether you dream of a car, a house, or want to see the world, financial freedom can help you realize your dreams.
- The age of technology
Today investing is more accessible than ever for all people on the planet connected to the Internet. Imagine that in the past you had to call a broker to make a deal. Today you just need to click a button and that’s it, you have an asset in your portfolio.
There are a million more reasons to start investing, so you start investing to add your reason to the list!