Investment is a process carried out by investors in which the allocated money is expected to grow. With the aim of generating profits in the form of increasing value over time through a variety of selected investment instruments.
Even though each investment instrument chosen offers different ways of working, risks and benefits, the fundamentals remain the same, namely allocating money in the hope that this money will increase in value over time.
In addition, risk also determines profit, although investors will very likely create an investment portfolio that is low risk, high return.
By investing, investors will get additional income from the money invested. So it is the money that is invested that will work for them in getting additional money rather than the investors themselves having to bother looking for it.
In addition, if you routinely invest at least once a month, then you can feel the benefits of these investments from time to time.
Able to Avoid Inflation
It’s no secret that investment can make you avoid inflationary pressures that occur every year.
In order for your money to grow over time, it has to earn a sufficient after-tax interest rate which is, of course, higher than the rate of inflation.
Currently, the average interest rate on savings accounts is low and difficult. So, it is very feasible for you to consider an investment that can prevent you from inflationary pressures.
Preparing for Wedding Expenses
Especially for those of you who are currently single and are starting to plan to marry a partner, you must realize that the cost of marriage nowadays is not cheap. Hundreds of millions must be disbursed on the D-day later.
If you save from now for the next 5 years, for example, you could lose 15% of your money’s value and make it even more difficult to collect.
Conversely, by investing as early as possible from now you can take advantage of the compounding effect to boost the value of your money going forward.
Your money will slowly grow, and if the profits you get are reinvested, you can make the profit interest return to generate profit interest so that the profit on your investment will increase.
Tips on Preparing Children’s Education Costs With Investment
Even though it may still be a long time for you, this should not escape your financial planning from now on. Moreover, the cost of education is never cheap. Even now the price is very expensive, what about in the future?
Therefore, try to invest to help you prepare for your child’s education costs as early as possible from now on.
Slowly but surely if you invest regularly, the benefits of investment will be felt in your struggle to prepare for the cost of child marriage in the future.
Preparing for a Retirement Fund
We will not be able to work all our lives. Of course there are times when we have to retire, especially at an age that is considered less productive. Many people who have not planned their retirement what to do.
But what is clear, if you have prepared a retirement fund from the start, that means you can enjoy old age without any financial disturbances, right?
Therefore, you still have plenty of time to start funding and take advantage of the compounding effect in your struggle to prepare for retirement funds.
Achieve Financial Freedom
Financial freedom is a condition in which a person is financially free, in the sense that a person has sufficient wealth to live without having to actively work very hard to meet very basic needs such as eating or buying clothes.
For someone who has achieved financial freedom, the assets they own can generate money whose value is greater than the cost of living.
Also with financial freedom, a person can do whatever he wants or needs from a financial point of view.
There is no person who doesn’t want to achieve financial freedom from his life. One of the things that brings you closer to this stage of life is investing.
You can really feel the benefits of this investment if you invest regularly from now on.
So, why not start funding as early as possible from now on? Still unsure about the greatness of investing?
You can even calculate the growth of your money over time, especially with the compounding effect, if you invest regularly from now on.
By investing regularly, the benefits of the investment itself will be felt in your financial life.