If you’re still on the fence about investment then, It’s time to take that positive action because you need to invest your savings now.
Most people save up for so many years but fail to invest and If you’ve been paying attention, you’ve probably noticed that inflation is at a 40-year high.
This means that life’s becoming more expensive than ever before. Everything is going to cost more, from buying groceries to filling up your car just to get to work.
You may have also noticed that your income likely hasn’t risen at the same rate. Despite the cost of living going up, you’re probably not earning at a rate to match this increase.
That’s why we can’t stress enough the importance of investing your money now, regardless of what stage of life you’re at. You may think that investing is too risky — but it’s even riskier to not have some money invested for the benefit of your future.
So, why do you need to invest?
You want your money to work for you. You work hard for your money, right? You should let your money work for you by earning some decent returns.
Your money loses value in a bank account. With inflation rising, your purchasing power drops when you leave your money sitting around, not earning interest, and don’t forget all the withdrawal or maintenance deductions.
A savings account just isn’t enough interest. My bank sent me an email about a limited-time offer of 2.5% interest on a savings account. This doesn’t even come close to the current inflation rate.
You don’t want to work until you’re 70. The sooner you start investing, the sooner you’ll have compound interest on your side. The whole point of investing is to ensure you don’t have to work forever.
You’re missing out on “free money” when you don’t invest. Your investments should be earning you money. When you don’t use your money to make money, you’re missing out on what would essentially be free money.
You should start investing early to build the habit. The point of investing when you don’t have much money is to learn how to invest so that you’re prepared when your income does go up.
It’s easier than ever to start investing your money. With the rise of so many platforms, it has become much easier to get started with investing. You can set it and forget it. You don’t have to study stock charts or sit in front of the computer for hours to start investing.
Dear EM readers, now we know the importance of investing, which investment platform do you trust?
Written by uchechukwu uzougbo