Why you Need to Invest in 2021 (8 Reasons)

Whether you choose to invest in Shares, Lands, Real Estates, Vehicles, Precious Stones, etc. There is only one motive for it; PROFITS. Yes, Profits or gains is the common ideology or objective of all investors.

What about the risks that come with investments? True, lots of risks come with investments, your shares could plummet, even your landed properties could be lost to natural disasters like floods and earthquakes. 

So why not keep my cash instead? Many people might argue that it is better to keep your money than risk losing it to unsuccessful investments. The devastation that comes with failed investments is indeed overwhelming, but the profits and benefits of a successful investment can not be overemphasized.

So in this article, I am going to share with you the 8 benefits of investments. Perhaps being aware of these benefits will help propel your urge to invest.

Why you Need to Invest in 2021

Below are the 8 benefits of investments;

1. Grow Your Money

Growing your money is the first and main benefit of investment. It is the conscious desire to increase the wealth that brings about the need to invest in the first place. If you’re serious about building wealth then you need to create an investment plan that suits you and your goals.

2. Investment Protects Your Money

Money may lose value due to unfavourable economic circumstances, one sure way your money could be protected during this time is if you invested it in properties or shares.

Investing is also important to beat inflation. If you don’t invest your money but just leave it in your checking or savings account, the money will decline in purchasing power as inflation will eat away the value of your money.

3. Get Higher Returns

If you want to grow your money, you need to put it in a place where it can earn a high rate of return. The higher the rate of return, the more money you will earn. Investment platforms tend to offer the opportunity to earn higher rates of return than savings accounts. Therefore, if you want the chance to earn a higher return on your money, you will need to explore investing your money.

4. Attain Financial Goals

If you have the dream of achieving any big financial goal like buying a house, lands, cars, starting your business, etc. Then investment is the best route to follow. Investing can help you reach big financial goals. If your money is earning a higher rate of return than a savings account, you will be earning more money both over the long term and within a faster period.

5. It boosts your confidence

Investing in yourself is one way to boost your confidence. To stand out among your peers, you need to have properly invested in yourself educationally and financially.

6. You Become Members of New Ventures

New ventures need the backing of money, and they look to investors for that backing. Some investors may like the excitement of investing in a new, exciting product or service or being part of something like a business or film that introduces them to a glamorous world.

7. An Expected Retirement

As you are working, you should be saving money for retirement. Put your retirement savings into a portfolio of investments, such as stocks, bonds, mutual funds, real estate, businesses, or precious metals. Then, at retirement age, you can live off funds earned from these investments.

Based on your tolerance of risk, you may want to consider being riskier at a younger age with your investments. Greater risk increases your chances of earning greater wealth. Becoming more conservative with your investments as you grow older can be wise, especially as you near retirement age.

8. Investment Reduces Your Tax

Compared to a normal savings account, the tax on investment accounts is quite low or none existent. As governments reduce their responsibility towards funding their citizens’ retirement years, they have created some types of accounts so that citizens can contribute and fund their retirement.

Conclusion 

You can secure your future with investments, it is true. Whichever way you choose to invest,  you need to be circumspect. There are so many fraudsters parading as investors looking for who to defraud. Let a credible investor teach you the right way to invest. There are many benefits of investing. If you want to create financial stability, grow your wealth, and stay on track for the retirement you need to come up with an investing plan that suits your needs.