29 November 2019
Why is investing important? It is a question with an obvious but prudent answer. If you are already struggling to manage a monthly budget and repaying debts, you might wonder why should you add another financial task to your to-do list. But, investing might be the most important expenditure of all. Investing is crucial as it takes both your present and future into consideration. Not only do you end up with more money in your bank account than what you started out with but you also generate an extra source of income for yourself. So, if you want to retire as a financially independent person, investment is the way to do it.
What is investing? Investing refers to generating money by using money. In literal terms, investing is putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit. This means anything that guarantees to generate a return is an investment. Let’s discuss a few ways to know how can you make your money work for you :
Spending money causes money to flow back to you. Did you ever notice how close-fisted people are broke most of their lives, but people who spend or buy things always seem to be able to continue buying things? Saving alone never made anyone rich. It is the money transferred that triggers that energy to bring it back to you. Spending money does not mean becoming a spendthrift. Spending money here refers to spending money to make money. You should not be afraid to invest money. Make your money work for you, instead of just sitting idle in your account.
Money can offer you a healthy and comfortable life. By spending the right amount of money on quality food, you’ll face fewer health-related issues. Money helps in reducing mental stress as well. You can plan vacations to relax and rejuvenate your mind and avoid worrying about unnecessary office related issues when you need a break. You don’t have to work as hard if you have a lot of money, leaving you free to follow your passions and hobbies. You can hire people to help out with housework, buy yourself and your loved ones all the clothes and little goodies you always wanted to, and never worry about splitting the bill the next time you go out.
Those who know how to spend wisely, spend more time on investing in themselves, helping others, being with their loved ones. So, yes spending money can improve the quality of your life.
An investor makes use of their money to acquire things that offer potential or profitable returns. They will devote his limited resources to the things with the largest potential for returns. These things may be paying down debt, going back to school, or fixing up a two-family house. Thanks to advances in technology, one can start investing with as little as Rs. 100 a month and a smartphone. But, does that really help? Investing involves risks. But, to succeed in life, playing safe won’t help you will have to take some risks. The more you invest the more will be the return on your investment.
Having multiple sources of income has obvious advantages and can have a major impact on your financial status. Even an extra income of Rs 5000 each month could go a long way towards paying off debts or increasing your investments. With multiple sources of income, you’re guaranteed some income at all times. Diversifying our income streams is a critical task in difficult economic times, and investment is the best possible way.
There are two likely ways to generate income in our modern world:
If you intend to save with your back pocket or under a mattress instead of investing, modern economic dynamics are unlikely to have you truly build wealth. On the other hand, by investing you generate income by earning interest or by buying assets that increase in value. Once you start spending more in the form of investing, you start earning more as well, making your money work for you, effortlessly.
Of course, if there’s ever a shortage of funds, it really shouldn’t be an issue. With instant personal loan apps like EarlySalary, our ability to live freely remains unrestricted!