When it comes to investing, not all of us can be Warren Buffett. We might not pick the right stocks, or we may make the wrong timing decision. But there are still a good number of solid reasons why you should invest your money today and smile later!
Here are eight reasons to invest today and smile later.
1) Increase your savings rate
If you want to become rich, first increase your savings rate. You can do this by either making more money or spending less. But if you don’t make much and spend most of what you make (or even more), investing is the best way to make the most out of what little you have.
2) Guaranteed return on your money
Cliché as it may sound, the best place to put your money is in investments that have a guaranteed return. Yes, even if you are investing for 20 years or more, the returns will be locked in, and you’ll still make a decent amount of interest! You won’t see a return on investment from putting your money under a mattress or hiding it from burglars in the backyard.
3) Get better returns than inflation
Inflation means that prices for items you buy will rise at certain points in time, so your money won’t be able to purchase as much as before. In the long run, inflation is inevitable, but it can also be controlled. And inflation goes hand in hand with interest rates, as the former is the reason why you get a good return on your investment!
4) Spend money on things that will make you more money
Aside from spending on important things like housing and food, let’s say you decide to go on a shopping spree. If you spend all your money on clothes, shoes and other things that are not long term investments, you’ll have to work more just to have enough for these items. But if you invest in certain instruments or funds, at least you’ll be getting returns from the purchases you made!
5) Make sure you have enough for retirement
Retirement doesn’t necessarily mean that you stop working. For most people, it means that they are no longer productive members of the workforce because they are either too old to work or too sick to do so. If this is not the case for you, then let’s say you have enough retirement funds or Trilogy Care, so you can leave your job one day without worrying about your finances.
6) Make sure you have enough for emergencies
Emergencies don’t only happen when you least expect them to, they can also be long-term, like some health conditions and accidents. Having a lump sum of money ready if such instances arise will make things less complicated and stressful for you and your family members.
7) Reduce the amount you borrow from others
In times of emergencies, some people might be willing to lend you money on a short term basis. If ever your car breaks down, and it would cost a lot of money for repairs, a friend or family member may lend you some cash until you get enough for a new one. But if your savings are not enough to cover this emergency, feel free to approach such people.
8) Have more time than money
Some people get paid a lot of money but lack the time because they constantly work overtime. This is why it’s important to have enough time and just enough money, since you can always make more if you need to. When your finances are in order, you can focus on other important things in life, such as friends and family.
Make sure to save money for the future, so you won’t get stuck with more bills than what you need. And remember that investing will always be a good option if it means getting a guaranteed return on your money!
Photo by Adeolu Eletu