So, you’ve been seeing and hearing the hype around investing and you’re now curious as to what the excitement is all about, right?
No? Ok. How about this?
You’re already on the investment train and want to remind yourself why you started in the first place or why you should continue- Did I get it right this time?
If you fall into any of the two categories above, you’re at the right place! So, let’s get into it. Here are the top 4 reasons why investing should matter to you, me, and everyone else in this entire world.
Beating inflation: Considering the current global economic landscape, where inflation is the hot topic, I think it’s only fitting for us to start here.
If one pen costs $100 today, and inflation /price changes by 10% over the period, for example, a month- if you decide to purchase this pen instead at the end of the period, it will cost $110 at that time. If you had put this $100 in a bank account somewhere, or even kept it in your purse, its purchasing power/ value would have eroded by 10%! Yep, you would have lost 10% of your hard-earned money…poof!
Hence, Inflation erodes the value of money over time, which means that the same amount of money will buy less in the future than it does today.
By investing, you can potentially earn returns that are higher than the rate of inflation, which can help to preserve the purchasing power of your money over time. When your money grows faster than inflation then that’s how you are able to build real and sustainable wealth. I’m talking legacy wealth and generational wealth..the good stuff!
Building wealth: Investing can help you grow your wealth over time and help you achieve your long-term financial goals. By investing your money, you have the potential to earn higher returns than you would by simply saving your money in a bank account. Over the long term, even small returns can add up to significant amounts of wealth.
Diversification:In addition to potential financial returns, investing can also provide benefits such as diversification, which helps to spread risk across a variety of different assets. Investing allows you to diversify your portfolio across a range of different assets, such as stocks, bonds, real estate, and commodities. This can help to reduce your risk exposure and protect your portfolio from market volatility; you know those ups and downs that can affect the value of your investments.
Generating passive income: Investing can also provide a source of passive income, such as dividends from stocks or rental income from real estate. This can help to supplement your regular income and provide financial stability.
And if you’re philanthropic and are looking to pay it forward and give back to those causes you to care about, Investing can also be a way to support businesses and industries that you believe in. By investing in companies that align with your values and beliefs, you can help to promote positive change in the world.
For these reasons, investing is an important tool for building long-term financial security and achieving your financial goals.
It’s important to keep in mind that investing always carries some level of risk and it’s important to do your research and invest wisely.