WHAT DO YOU MEAN BY INVESTMENT ? HOW INVESTMENT HELP YOU TO GROW FINANCIALLY.

jupitadas625 

Talking about investment, many people thinks investing is not for them. It requires a lot of money. So only rich can invest money. It also requires lots of knowledge and experience to invest. Well, people have this kind of misconception because of lack of knowledge about investment. Yes, before investing we should have some information about it. Once you start investing you will auntomatically get enough knowledge and experience to invest more. In this post I will answer your few common questions regarding investment like what is investment, how does it help us to grow financially etc. Later on, I will post more which will help you to invest without any hesitation.

Investment is an activity where you exchange your money for an asset. The assets can be real or virtual. The value of such assets vary over the time. Most of the people prefer to save money instead of investing thinking it’s too risky and out of their reach. They simply opened up a high-interest savings account to save their money and to earn some profit out of it. But saving a little money is not enough. Even if you are earning a solid rate in a high-interest savings account, it will take you a long time to get a substantial return. You need to put your money work for you so it earns more than even the high-interest savings account. Invesment is the first and the best way to do it. Rather than earning a little interest from your savings account, you can earn around 8 percent per year over the long term by investing which is more profitable than savings account. For example-if your saving account returns 3 percent on average and you drop $1,000 into your savings account for thirty years, it would have grown to just $2,427 on paper, inflation would have also dragged you returns down. But just from investing that also for one time, you would be able to grow your money upto $10,000- eclipsing the drag inflation and giving you incredible results.

Many people may ask now,”We don’t know how to invest, how to pick stocks”. Investing is not about picking stocks. Until some of them invest in a 401 k(a type of retirement saving plan)-whick might be the extent of their investments. Most of the people do not want to invest because they think they will lose all their money. Sometimes stock market gets cheaper and people consider it as loss. Long-term investors should be happy when the stock market drops as you can buy more shares for the less price.

Investing may seem intimidating, but it’s actually quite painless. What can be more happier than growing your money, focusing on living your life. Investing can really make you rich. We just need to change our attitudes and behaviours towards money.

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1 Comment

  1. Sekret-Natury

    Excellent write-up

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