As the challenge to survive in emerging world is becoming more and more intense, it is inevitable to broaden the income streams, this is the reason that the question Why Should I Invest? is to be answered. Investing is one of the most popular ways to gain financial liberty. Avoiding investment is simply avoiding growth opportunities. There is a direct correlation between risk and reward, it means higher risk will offer you higher rewards. If someone is reluctant to invest actually, he is reluctant to take risk and resultantly he is losing the rewards.
Let’s discuss some of the promising reasons to invest:
Incremental Wealth
Investing allows you to grow your money. Different investment streams i.e. Shares, CODs (Certificate of deposit), bonds etc. can offer gain on your money for longer period of time. So, finally you will become wealthy over time
Compounding Returns
Simple rule of compounding is generating returns on investment and reinvesting these. Finally, you will be getting return on these invested returns. In this way investor’s wealth will be compounded by gaining return on returns. simple saving plans cannot offer compounding benefits
Why Should I Invest – Retirement Security
Every working person usually set aside some amount that he will be utilizing after retirement. Instead of saving you can opt for investing in bonds, mutual funds, real estate or precious metals. So, after retirement you will be enjoying handsome returns from these investments
Achieve Financial Targets
someone may be targeting to buy a home, a luxury vehicle, initiating lucrative business or your child’s educational growth. Investing can help achieve your financial goals at faster pace than keeping your money in saving account
Cultivating Tax benefits
In some states it is permissible to invest your pre-tax earnings and enjoy tax exemptions. Like investing in mutual funds offers tax credits up to certain level
Supporting Business expansion or start up
Starting or expanding business requires rigorous efforts and qualities of entrepreneurship. By investing in start-ups or expansions investors can encourage entrepreneurship and make great enterprises. So, investors will enjoy attractive returns on their investment
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