You must have seen the various advertisements that
say you should invest but in those advertisements, they must invite you to
invest basically to increase their sales or get you registered with them. But
do you actually know why you should invest?
Let
us know about the facts and reasons that clear about why we should start
investing now.
These
are the reasons that can make you to go for investments:
1.
Real
Learning about the field of Investment: whatever the courses we done or through
physical classes, but the real learning is got after spending some pennies on
investments. If you make the investments and don’t have the idea about anything
either to increase it or not, then even you learn about how the market works and
that gives you the knowledge of market and give the courage to make better
investment in future and even if once made investment reaches to the loss, at
least second times you know like where to stop and how to achieve the break
even. Timely and continuous investment makes you pro and new experiences help
you to make better decisions for investment.
2.
Investment
helps to save for future while becoming a guard for inflation: As
we know how much the inflation is increasing like if talk about currently 6%
and if talk about the investment in saving accounts that is very less as
compared to the inflation like hardly banks give 4% interest on savings and
fixed deposits gives 6 to 7% and even if it giving 7% , then also , you are
saving just 1% for the future but through the investments, even the 10 rupees
can make you the millionaire as investments in Wipro 10 years can give that
person 6 Crores in today’s time.
3.
Knowing
about the reality behind the investments: if we ask to the parent generation of ours and
they will say that investment is risky, it contains so much risk and the whole
money can go in vain. yes, they are right at their point of view because 20
years back , the investment was really quite difficult as there was no
dematerialization of the accounts and even the stocks were in paper and if one
lost that paper , his/her money could really go in vain but if today’s
generation speaks that, that’s quite wrong as at recent times , investment has
become very smooth and easy as everything is done online and there is no fear
of stealing/burning of stock papers and
we young generation has so many sources to do the fundamental analysis of an
organization which we can invest by analyzing the nature of business, financial
statements of an organization are public and can be checked and analyzed by
anyone , I am not talking about the much of technical analysis but minimum to minimum we can check
about the increase or decrease in the profits for the last ten years and apart from
that , we have the number of sources to check about the analysis of an
organization and even the continuous investments make an investor pro even in
technical analysis without seeking any degree.
4.
Start
a new business: if you have also the dream of
staring your own business and also having that fire in you to start something
of your own and money was the constraint, then even you can go for investment
and earn that much of returns that may help you to start your business and
fulfill your dream.
5. Supporting others: Yes,
it is true that there is emotional need
that other person want you to fulfill by you but money is also equally important
and you know it too, that when you are hungry , you cannot fill the stomach of
others, so if you are such a person who wants to help society financially, then
investment is the great way to moving through this path and you can do for the
society much better things and even can teach others how to generate money
through investments which even work for whole country to have the balanced
growth.
6.
Become a part of a business: By investing in some business, we become the
stakeholder of that company which makes us the part of that organization which
make us feel that we are attached to such a reputed organization and not being
the profit sharing partners , but we become the stakeholders which is also an important
part for an individual as to be the stock holder , it is very precious to
become the stakeholder of some reputed organization
7. Earn money through the
money itself: you must have heard of that prose that
money invites more money so that the investment made once can give you the more
money through which the time value of money as the value of money is going to deteriorated
in the future what is it today and that can be sorted out and as we discussed
in the earlier point as well that the dreams of a person can be fulfilled such
as doing something for the society and for others and achieving the good life.
8.
Financial
Security: there is the need to survive in such an
economy where the unemployment is increasing but there is no scope of jobs to
be generated on the coming ten years , either it is any degree that we have
done , the severe unemployment cant be overcome through these job skills, so
the left thing that can generate the money for the survival is the investment ,
if an individual is earning 100 rupees per day , he must invest rupees 10 in
stocks which will become a solid strength for him/her in the times when he/she
is not having any job, so in short, the investment give us the financial
security.
9. Early the investment, better
the retirement: As we can’t work for our whole
life, we have to take the decision of retirement at some age and planning about
the retirement is equally important to take the decisions of the retirement. Everybody
plans their retirement as per their thinking and the savings but if we make the
investment at the early stage of our life then we can gain for the future and
can live the retirement period very smoothly. This thing can be understood
through an example:
For example, there are two persons say A and B
- A is of age 25 and decided to make the investment and his plan is to retire at the age of 60.
- He
has Rs. 1, 00,000 to invest.
- His
investment generate 8%
- So, for the 35 years, the interest earned for A would be:- 2, 80,000(it is just the simple interest, CI can be more)
- B is of age 40 and decided to make the investment and his plan is to retire at the age of 60.
- He, also has Rs.1, 00,000 to invest.
- His investment generates 9%.
- So, for the20 years, the interest earned for B would be:- 1, 80,000 only (it is just the simple interest, CI can even be more)
So, we have seen in the above example
that A decided to investment earlier than B and even when his return was less
than B still he made more money than B. so, the investment should be made right now if you are in early 20s but you
are not late when you are not.
So,
these reasons can make you invest right now as now exactly you know why the
investment is important for you.
GET UP AND INVEST!
Thank you
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