Why Investment is Important for Future Life?
Investments are important for all of us because it acts as a safety net for the future. We would need money for a lot of reasons in the future, be it our studies, marriage, kids or retirement. All of these needs won’t be fulfilled with just saving up money. There has to be some other activity that could get us that money and ta-da! Investments are here to help you out. Also, diversifying our investments is also essential. They do say that never put all our eggs in one basket!
Even though investments might be vital for us, investing our money in the right and secure scheme is the crucial point that needs to be taken care of. Some investments are risky and some give 100% cash back. Hence, knowing the schemes and rules of these investments are very important before we start putting in our money.
It’s never too late to become an investor. You may be well into middle age before realizing that life is moving quickly, requiring a plan to deal with old age and retirement. Fear can take control if waiting too long to set investment goals, but that should go away once you set the plan into motion. Remember that all investments start with the first dollar, whatever your age, income, or outlook. That said, those investing for decades have the advantage, with growing wealth allowing them to enjoy the lifestyle that others cannot afford.
Work, Income, Money and future are part of the whole life which defines the standard of life one is going to live in their lifetime. Earning in the present state must be complemented by future savings to give you the cushion of making for those years after retirement. These investments must go hand by hand while you are earning through your age as they will grow to give large wealth in later part of their life.
Why is investment important for the future?
Uncertainty of Future
Securing your Future
With right investment and insurance one can make their future as well as their family ones. Home planning, Child Education planning, Marriage planning, retirement funds and many more are there which can be specifically targeted to aid your future expenses leading to better outcome. Every individual works with specific targets and motive for earning in their life. These expenses are important part of their family and he or she must take initiative in preparing in a suitable plan for their near ones.
Life Stability
Life nourishes when you have the stability, and with you present and future being planned in every way these things will push further to achieve new heights in life altogether. Financial stability is must in this competitive world for moving forward in a systematic way. These investments will largely help you take right decisions for untimely expenses and specific goals like marriage funds that aide’s happiness and fulfillment with personal desires too.
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For good retirement life:
You're going to retire one day, right? When you retire from a good job, you have no solid or regular source of income during retirement years.. But your expenses will be there and cost of living will keep increasing. Retiring doesn’t mean your living expenses or costs will also stop. Right?
Think about how you will live after retirement and why it is important to plan for it. Use your savings and start investing in different options like mutual funds, stock market, FD’s and real estate. So that you can live your life during retirement with help of this profit / passive income.
Basically, investing helps you live your retirement life comfortably.
To protect yourself financially from any unforeseen event
Life is uncertain … emergencies come when we are expect it least. If you are investing and saving money in your emergency fund for any such uncertainties/emergency like losing a job, disability etc. then it can help you to protect yourself financially in such situation.
Take the example of the present situation. Many of you know that some people have lost their jobs and their salaries have been reduced due to the current pandemic. In such an unfortunate situation, your investment can help you survive and buy essentials like food, gas, electricity, etc.,for a while, until the situation improves.
Money cannot be disguised
Everything can be disguised but not money. When you have a financial problem, you can't say or do much about it. After a point financial aid is not useful or there are limited ways to get financial help. Instead, why be prepared yourself financially? It is always better to be financially self-sufficient than to reach out to others for money.
To increase your wealth and financial assets
One of the main reasons why one should invest is to increase one's wealth and financial assets. And who doesn’t love extra money or little profit?
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To achieve various financial objectives
Investing can help you achieve different financial goals. If your money earns a higher rate of returns than a savings account in investments, you will earn more in the short term. one can use this invested money to buy a house, buy a car, start your own business or educate your children etc.
To gain financial freedom
You know what? You can't have financial freedom without investing. Saving money in a bank alone does not give you financial freedom, but investing gives you real freedom. Because investing offers passive income or returns that helps you achieve financial dependence.
Investing helps build confidence
If you are investing and can see positive returns, it helps to boost your confidence that you are not dependent on anyone for money. You can take care of yourself now and in the future.
Tax deductions/benefits
Investing helps in reducing your taxable income. You can invest your savings in various investments avenues which provide tax benefits.
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Hera is one best example for the important of investment,
This is Vijayalakshmi.
She is a famous South Indian actress. She has acted in around 37 movies including Kannada, Tamil, Telugu and Malayalam.
She has acted with almost all the big names of every South Indian film industry like Vishnuvardhan, Shivarajkumar, Raghavendra Rajkumar, Upendra, Mohan Lal, Vijay, Suriya, Arjun Sarja and so on.
She has also acted in a number of serials and hosted quite a few successful game shows.
Basically, every South Indian movie buff would be quite familiar with her.
Today, she is admitted in a hospital and is seeking monetary help from anyone she can. She says she doesn’t even have a house to go back to.
What happened?
How did such a successful actress fall from her grace?
Simple. When you are riding the high horse, you wouldn’t think of what would happen if the saddle comes loose. Basically, no investment for the future.
Sure, an actress has to splurge a considerable amount of money in terms of fashion and status to keep herself employable. But what happens when you are no more employable?
This situation can be averted by judicial investment of your finances.
A supporting actor for a serial today is paid around 3000 per episode excluding food and transport. So the main character will be obviously paid at least twice of that. For simplicity sake, lets consider it as 6000. Multiply that with 500 episodes (one of her serials ran for 845 episodes). 30 lakh rupees. And this is a conservative estimate. Main actresses get paid a lot more than that.
A 30lac investment over a period of 10 years in an SBI mutual fund would have generated 94lacs!
She is crying and blaming all her co stars that no one is helping her. They probably should, but how can you think that they owe you something?
Hopefully she gets better and gets back to the stardom she had achieved and this time build a better future.
And that’s why investment is important.
So, at the end just want to say always have an investment plan for a better future. Quick decision at the right time always matters.
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