We have all heard someone, whether on social media or in conversations with family or friends, saying that you need to make your money work for you. When you think about it, it’s such a wild thought that money can work for you and you can be its boss and not money be your boss.
We work extremely hard on day to day basis making sure that we can make money to sustain ourselves and also gain value for the time we put in and the skills we have acquired. What is important is to make sure that our energy and time does not go in vain. The money we make is predominantly because of the time, expertise and innovation we put into something. Thus, it is a great idea to benefit from all the work we put in, not only for your current financially stability but also for the benefit of your future self. This is where investing comes in.
Investing is a phenomenon that has been there for years. The intent of investing is make your disposable income and/or capital work for you. There are various types of investments available whether it be investing in equity, bonds, property, currency or even investing in a friends business. When you invest your money you are putting money away in a vehicle that will allow your money to grow over time.
There are so many benefits to investing that it’s probably physically impossible to place them all in one article, here are some that we think are important:
- Grow idle money
Investing is a powerful tool to grow idle money which help limit splurging on products and/or services that will not benefit you now and in the future. By investing your money you are making your cash work for you which increases the value of the money that currently has no intent. This is extremely beneficial as the money will yield returns (interest) and if the right vehicle is chosen the money will still be accessible to you as and when you need it.
- Maintain purchasing power
If you have accumulated money and are still accumulating money from your hard work, what is important is to maintain the purchasing power of your money. As we all know that the price of bread last year is not the same as the price of bread today. The reason for this increase in costs is called inflation. Investments can assist you to grow your money and receive a return (interest) that beats inflation, which means you will maintain the purchasing power of your money.
- Make your goals a reality
Part and parcel of being a human being is the aspirations that we all have to become better people and change our lives and that of our families for the better. Whether this is through making sure all your family needs are taken care of or indulging in new experiences that you will never forget or even upgrading your standard of life, these are all goals and aspirations that we have. This becomes achievable if we firstly plan for them and secondly use the appropriate investment to accumulate and grow your money so your goals may be achieved.
- Cater to your future needs
The older you get the more apparent it becomes that we all have the responsibility to take care of ourselves and families. There is generally an inherent desire to manifest goals and to make them a reality in the future. These goals range from sustainable retirement income to taking your children to university. Whatever these needs may be they can be planned and achieved by using investments as a vehicle to accumulate the money required for these needs.
- Prepare for unforeseen circumstances
Life is full of surprises sometimes good and sometimes bad. Having an investment set aside for rainy days or when a need arises, gives you comfort that you have made provision for unforeseen circumstances. Being prepared and having money available for unexpected events is better than using debt to finance circumstances that may be out of your control.
Whilst there is so many other benefits to investing. The picture we have painted here is how investments fit into the bigger picture of your personal finances. Needless to say that planning and reviewing your investments will yield the best results in the future. To invest the only best way to start is to get advice and assistance from an expert. This experts you can seek advice from ranges from a financial planner, financial adviser, stockbroker and investment specialist. Do remember that if you want to invest all you need to do is start.