In order to build your wealth, you will want to invest your money. Investment allows you to put your money in vehicles that have the potential to earn strong rates of returns. If you don’t invest, you are missing out on opportunities to increase your financial goals.
Of course, you have the potential to lose your money in investments, but if you invest wisely, the potential to gain money is higher than if you never invest. You will want to invest for the following subsequent reasons :-
· Grow your money
· Save for retirement
As you are working, you should be saving money for
retirement. Put your retirement savings into a portfolio of investments, such
as stocks, bonds, mutual funds, real estate, businesses, or on precious metals
etc. Then, at retirement age, you can live off funds earned from these
investments.
Based on your personal tolerance of risk, you may want to
consider being riskier at a younger age with your investments. Greater risk
increases your chances of earning greater wealth. Becoming more conservative
with your investments as you grow older can be wise, especially as you near
retirement age.
·
Earn higher returns
In order to grow your money, you need to put it in a
place where it can earn a high rate of return. The higher the rate of return,
the more money you will earn. Investment vehicles tend to offer the opportunity
to earn higher rates of return than savings accounts. Therefore, if you want
the chance to earn a higher return on your money, you will need to explore
investing your money.
·
Reach financial goals
Investing can help you reach big financial goals. If your
money is earning a higher rate of return than a savings account, you will be
earning more money both over the long term and within a faster
period. This return on your investments can be used toward major financial
goals, such as buying a home, a car, starting
your own business, or putting your children through college/higher
education.
·
Start and expand a business
Investing is an important part of business creation and
expansion. Many investors like to support entrepreneurs and contribute to the
creation of new jobs and new products. They enjoy the process of creating and
establishing new businesses and building them into successful entities that can
provide them with a strong return on their investment.
·
Support others
Many investors like investing in people, whether they are
business owners, artists, or manufacturers. These investors feel good helping
others achieve their goals.
"I will tell you how to become rich. Close the doors. Be fearful
when others are greedy. Be greedy when others are fearful." — Warren Buffett
