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Investing 101: Answering the Question: Why Should I Invest?

April 21, 2024
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Investing is everything. Here are 7 reasons why you should start investing today.

You have probably heard people talk about how investing is very important and a very wise person should put their money down to one or more investments for long term benefits. A lot of inflections are put on the importance of investing your money.

If you still dont know what the rave about investing is, Im here to give you reasons why you should start investing today. It is good to see that so many people are not only looking to have their money sitting idly in the bank in the name of saving. Dont get me wrong, saving money is good, but investing it is far much better. When you just save your money instead of investing it, you will not be able to beat inflation or even grow your wealth.

Putting your money to work through investing can help you achieve that and so much more. Lets find out.

In this article

So, Why Should you Invest?

Investing is everything. Here are 7 reasons why you should start investing today. 

1. You grow your wealth

Do you want to live in that house or drive that car? Start investing today. If you want to grow your income and build wealth, investing now is your best and only bet. When you invest your money, you have the potential to get very high returns on investment. The compounding interest rate allows you to get a high yield on the money that you invested, upon maturity.

This extra income that you get above the principal is what gives you the benefit of growing your wealth over time. Some of the investment options that give you high compounding interest rates include high yield savings accounts, treasury bonds, money market funds, dividend stocks and real estate investment trusts (REITs).

2. You get to beat inflation 

Inflation is a decline in the value of money due to an increase in the quantity of money. When there is a lot of money circulating in the economy, the prices of commodities go up and what you could buy with lets say $100 becomes little. Everybody hates inflation except those who invest their money in valuable assets.  When you just save your money, you may find that in the next couple of years the value of your money will decline.

With investing, your money is protected from the effects of inflation and you are guaranteed the full value of your investment upon maturity, in regards to the economic climate. Investments that shield you from inflation are stocks and real estate.

One app that allows you to beat global inflation as you invest in international stocks is Hisa App. You can download the app from any part of the country and start trading in US stocks. Beating inflation is a top priority for anyone who wants to invest today.

3. You can realise your financial goals 

Do you have any financial goals that need money? Are you planning a vacation? Do you want to raise capital for your new business? Investing is one way to help you meet your financial goals.

Whether you want to buy a house, a new car or build an emergency fund, you can achieve these goals with the returns you get from an investment. Ive seen a lot of people putting down their money for short term or long term investment to meet their financial goals and they eventually did.

You can go for long term investments like stocks to achieve long term financial projects like buying a house. Start investing today and move one step closer to meeting your financial goals.

4. It is a good financial habit

Do you have poor financial habits? Are you wondering why you cant make any financial achievements? Do you overspend, fail to budget or dont plan your finances effectively? Do you not invest? Investing is one of the habits of financially successful people. Besides, it is good practice to put your money aside for investing.

When you can commit to a particular investment whether in the short term or long term, it just goes to show that you have control over your money and money doesnt control you. You also gain discipline as you check on your investments and learn how to make informed decisions around money.

5. Provides financial security in case of retirement 

No one can work until they die. If you are planning on retiring in the future and just enjoy the fruits of your labour, investing is one way to do it. You are assured of a secure financial future because the return on investment is guaranteed. You can use these returns once you have retired, either to buy a home for medical coverage or to pay for your childrens school fees.

Invest in assets that are on the low-risk end of the investment spectrum so that you do not suffer any huge financial losses. Some of the best predictable investments include stocks, t-bills,t-bonds and real estate.

6. Gives you financial freedom 

This is also another important reason why you should invest. When you invest your money, you are guaranteed a regular flow of income. You dont have to spend the rest of your days in debt or living paycheck to paycheck. You will always get money to help you live comfortably. If you have any debt, you can pay it off without so much as a strain.

What is Financial Freedom? Image source: https://jnews.uk/the-7-levels-of-financial-freedom-according-to-a-millionaire-50-of-us-workers-are-at-level-2/

The return you get from investing in lets say stocks, will be enough to help you pay off your debts and gain financial freedom.  This sense of financial freedom with investing is important if you want to live a more fulfilling life. It is also very important to learn about these concepts of personal finance management as you invest. For instance, with Hisa App, you not only invest in US stocks but also gain personal finance tips through curated business news, podcasts and discussions on wealth. 

7. You save on taxes

Another reason why you should invest today is that you may not even pay taxes on particular types of investments. Taxes on investments are lower or may not be charged on particular investments. This is good for you if you want to cut down on your overall expenses.

Some tax-free investment options include ETFs, mutual funds and some treasury bonds like infrastructure bonds. Tax-exempt investments will give you high returns, allow you to save more and build more wealth.

Final Thoughts 

When you ask any investor why they invest, the answers are usually the same: to build wealth, beat inflation, gain financial freedom, etc. With the world going through many economic changes, investing is one of the best things you can do to protect your finances. There are a lot of investment options out there that you can go into.

For example, we have the stock market and real estate. As you build your portfolio, you have to choose the best investment options so that you can realise these benefits.

Do thorough research, look online, consult professional investors and make sure that this is what you want before you start investing. If you can pick the right investments that meet all your financial needs, you will reap all these great benefits of investing.

One of the best place for any beginner in investments to start investing is through the Hisa App platform. You will have access to US stocks and also invest in index funds. Do not be left out. Start you investing journey today and get all these surprising benefits of investing. Good luck!



 


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