Do you wonder why everyone seems to be going on about investing nowadays?
It’s literally all-over social media - with TikToks about what benefits individuals gain from investing and people going on about this concept of passive income. This week, we’re breaking down some reasons why you should be investing!Investing can be defined as committing funds to different types of assets with the expectation of generating a profit in the future. It provides an opportunity for you to grow your wealth but always remember with investment, YOUR CAPITAL IS AT RISK!
Investing can provide you with additional passive income without you having to do anything -except invest your money!
And due to technology, you don’t have to be an expert! Here are some reasons why you should be investing instead of letting your money just sit in the bank.
Retirement Plan
Investments can provide a safety net for a lot of people once they stop working! Seeing as they won’t be getting a salary anymore, investment profits can fund a lot of people’s lifestyles once they retire. It also means they are not forced to rely on any family, friends or even the government for money as they have invested wisely in their younger years.
In this case, investing could promote one being self-sufficient and you are not forced to rely on others for money.
Tax Efficiency
Investing helps you save the amount which you would be spending on taxes. As there are investment accounts where the taxes on your investments are lower or non-existent. The government have even helped with this as they introduced accounts such as ISAs and pensions so that individuals are able to contribute towards their retirement years, so they aren’t relying on government funds.
Beat Inflation
Investing your money instead of letting it sit in your checking’s or savings account could prevent the money from declining in purchasing power as inflation may reduce the value of your money over time.
Achieve your financial goals!
Financial freedom is the ultimate goal. You can be a step closer to achieving that goal by investing. Remember investing provides passive income - this means in addition to money which you earn from your job, you are getting money from another source. This is why investing has become quite popular in recent times. As people just have to put their money into whatever industry they feel would benefit them the most whether it be real estate, stocks and bonds, index funds or small businesses.
Investing could possibly assist in providing that financial security which you may desire (Capital at risk).
This article should not be read as personal financial advice. Individual investors should make their own decisions or seek independent advice.
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