(photo source: money under 30)
Investing for something can be daunting for some because most people doesn’t really want to spend their money. Others find it impractical to invest on stocks and anything related to that field but the truth is it is actually one of the easiest and efficient way to safeguard your future. There are a lot of reasons why money investment is worth it and if you are one of those people looking for reasons, you landed on the right page.
If you want to know more, see the list below:
- Market Risk Is Just One Of The Many
As per Bankrate, losing money in the stock market is not the biggest threat to your wallet. People without a large amount of money saved for retirement run the risk of outliving their savings. Those who invest only in very safe investments risk losing purchasing power to inflation. “If you don’t grow your money, you may not be able to afford things in the future,” Lazaroff says. “So, you invest to grow wealth and preserve purchasing power.”
- The Bond and Stock Market are Vast and Large
Bank rate said that stocks and bonds are the meat and potatoes of investing. In general, buying a stock is more risky than buying a bond. Some stocks are less risky than others, though.
- You Don’t Have To Put Everything In Stocks
As what Investopedia would say, Fidelity believes that an appropriate mix of investments should be based on a person’s time horizon, financial situation, and tolerance for risk. But, as a general rule, those with longer investment horizons should have a significant, broadly diversified exposure to stocks.
- Grow Your Money
According to the editors of All Businesses, Investing your money can allow you to grow it. Most investment vehicles, such as stocks, certificates of deposit, or bonds, offer returns on your money over the long term. This return allows your money to build, creating wealth over time.
- 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.
Author Bio: Mark Aldrin Hipolito is a day-time writer for FP Markets, one of the most successful and established forex providers in the world. He writes to help people get interested in the world of trade markets.