Investing is something that everyone should do. There are so many benefits of investing that it makes no sense not to get started.
If you want to build wealth and financial stability investing is what will get you there.
Still not convinced? Here are five benefits of investing.
# 1- You Stay Ahead of Inflation
If you don’t invest and grow your money, you’ll actually end up losing money over time. This is all thanks to inflation.
Inflation is the general increase in prices that happens every year and the decline in purchasing power of your money. The rate of inflation can vary widely but historically inflation has averaged to around 3%.
If you invest your money and say, earn a rate of return of 7% on average, then you’ll stay way ahead of inflation and will be to increase the value of your money.
# 2 – Investing Will Help You Build Wealth
I think this should go without saying, but I’m going to say it anyway: Investing is how you build wealth.
There are a hundred and one ways to invest and grow your money. If you’re serious about building wealth then you need to create an investing plan that suits you and your goals.
The wealthy invest, the broke do not.
# 3 – Investing Will Get You to Retirement (Or Early Retirement)
In order to have enough money to retire you need to make your money work for you. Like we illustrated above, leaving your money sitting in savings will actually work against you!
The more you invest the more you’ll be able to take advantage of the power of compound interest.
Compound interest is what happens when you’re interest starts earning interest.
# 4 – Investing Can Help You Save on Taxes
Another HUGE advantage of investing is your ability to save on taxes!
# 5 – Invest To Meet Other Financial Goals
You can also consider investing to help grow your money to meet other financial goals. For instance, investing in your child’s college fund.
When you have a long term goal of ten or more years it may make sense to invest that money to help you reach your goal faster!
There are many benefits of investing. If you want to create financial stability, grow your wealth, and stay on track for retirement you need to come up with an investing plan that suits your needs.