In this article, you will get why should you invest, what are the main objectives of investment and what benefit you will get when you start investing
Let’s understand the word investment first then jumps to the objectives of investment.
Investment is nothing but a way of keeping money aside from your income than putting it in a mechanism to generate more money which will lead you to be rich. Hence, it is the main objective of investment.
Benefits of investment
TO CREATE WEALTH
Wealth can be created either through businesses or investments. You can run both together or any of them. One should not doubt if they start either of them or both wisely. Because this is the fact that both are wealthy who started either investment or business or both together. Doesn’t matter what you start initially but gradually, you will run both together directly or indirectly which will lead you to create wealth in compounding. The legend of investing Warren Buffet didn’t start business initially, but was a disciplined and wise investor and now runs a business. Another rich person Bill Gates started a business, and now invest indirectly through his business in other businesses.
TO BE FINANCIALLY INDEPENDENT
We all know the meaning of INDEPNDEND in a way that nobody should interrupt while doing anything of our want. But we aren’t able to understand that why whenever to think of premium quality which involves adequate money to fulfil the greatest of good life DON’T ABLE TO REACH. The reason is very visible that we are not financially independent. But as the saying goes “there is always a way to get out of every problem” in the same way to get out of this situation we must start investment before disappointing later. Take some time to forecast financial dependency and start investing wisely before getting late.
MAKE MONEY TO WORK FOR YOU
We common man know how to work for money but don’t know how to employ money to work for us. There is no doubt that we become disappointed when paid less than the work done. Still, work harder in the hope of making more money but now again paid lesser than what expected. In this situation, one will either quite the expectations and keeps on working or WISELY think of some other way, which directly or indirectly goes running INVESTMENT OR BUSINESS. Which leads money to work for them now which is damm right shit. To start that we just require a disciplined, patient and wise mind to make money to work for them.
TO SAVE TAX LIABILITY
Why do we pay taxes from our hardcore earned money which only and only belongs to the person who earn? Some would say because of falling in the TRAP of TAX SLAB by the income tax department. The majority would say “We all use the resources of the government”. And only a few would say for the development of the nation which is good and valid reasons for sure. But instead of finding the right and legal ways to save the taxes. We people try to hide their income illegally which is truly wrong and foolishness. It gradually leads to becoming corrupt.
But only a few people know the reason that by INVESTING, all the reasons for paying taxes are met and the individual’s tax liabilities also reduces. We must know post invest less tax have to be paid. This is one of the qualities of a wise mind. When this is that much easy can’t we start investing and make a win-win situation for both our self and the nation.
TO BEAT INFLATION
While doing a SWOT analysis (Strength Weakness Opportunity Threat) the company or an individual can only manipulate strengths and weaknesses (which is internal factors) about the forecasted or actual situation of opportunity and threat instead of “Opportunities and Threats” (which are an external factor). It means we can not change the situation which is not in control of an individual but can overcome through some other ways.
In other words, an individual can’t increase or decrease the inflation but can BEAT AND OVERCOME, by starting a simple investment wisely instead of putting money in the savings account of the bank.
We all must be aware of the position that in which side of the balance sheet of our own life is placed either in a liability or assets side. People having without goals and dreams comes in liability and rest in the assets side. As the work of asset is to generate inflow directly or indirectly in the same way your investment will generate a return. As we invest in the financial market our economy gets support from our investment. Which leads to support the economy of the nations. The more we invest more the economy gets support and leads to the development of the nation. And you consider yourself as an asset of the country like a rich is considered the asset of the nation.
TO REACH FINANCIAL GOALS
Being a human everyone possess the dreams and goals in their life. I separate goal in two parts i.e FINANCIAL and NON-FINANCIAL. Except for making yourself money, everything is non-financial goals or dreams either doctor, lawyer or CA etc.
Others may fulfil your non-financial. They would be your parents or some financial company who lend money. But good investment only way to achieve a financial goal. And goal must be associated if the random investments are made to be a disciplined and wise investor.