If you want to increase your wealth, you must put your money to work i.e. you must invest. Investing lets you place your money in vehicles that may yield strong rates of return.
So, if you aren’t investing, you are missing out on opportunities to improve your financial value. Obviously, there are high chances that you may lose your money in investment. But if you invest wisely, the chances of gaining money in higher than never investing.
Not only should you invest, but also consider saving money for the future. You can use that money for investing later in the future and even more important for having a better lifestyle.
In this blog, we are going to provide you with a few important reasons why you should invest. Let’s get started-
Here are the top 5 reasons why you should invest & save your money:
This is one of the most popular reasons to invest and is the main reason why people often buy stocks. When investing is done right, you can grow your invested money by anywhere from 7% to 10% per years over the long run.
Suppose that you invest Rs 10,000 in the stock market today and it gains roughly 7% per year. You will convert that Rs 10,000 into Rs. 20,000 in just 10 years.
Likewise, you can invest in mutual funds, bonds, securities, and other schemes and get amazing returns. However, before investing, you must ensure that you have a better understanding of the stock market and investment.
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Everybody who is working might be saving money for retirement. If you are also one of them then we suggest you put some portions of your retirement savings into the investment portfolio. You can invest in stocks, mutual funds, businesses, bonds, securities, real estate, gold or other precious metals.
By the time you retire, you can live off funds made from these investments. Greater the risk, the chances of earning greater returns increases. It is wise to be more conservative about your money as you grow older, particularly when you are about to retire.
Keeping money in the savings account or in the drawer at your home won’t help it grow. Instead, you need to place it in a place where it can yield a higher return like in stocks, mutual funds, gold, etc. The higher the return rate, the more money you will earn.
Investment vehicles are more likely to extend the opportunity to earn higher rates of return than savings accounts or fixed deposits. Hence, if you seek to earn high returns, you must start exploring investment options.
There’s no denying that investment will ultimately help you achieve your financial goals if done correctly. If your investment is giving you a higher rate of return than your bank account, you will be making more money both over the long term and within a faster period.
You can use these returns earned for major financial goals such as buying a home, car, or starting your own business, or sending your kids to the best colleges in the country, etc.
If you invest, you may be able to lessen the income tax that you pay every year. Under Section 80C of the Income Tax Act 1961, the investments made by the investors are eligible for tax exemption up to a maximum limit of Rs. 1.5 Lakh. These investments include fixed deposit, PPF (Public Provident Fund), ELSS (Equity Linked Saving Scheme), Bonds, and National Savings Scheme.