Investments are not just for the wealthy - salaried people like us also have a lot to gain from investing our money. Investing money in instruments like stocks, bonds, mutual funds, precious metals, real estate, small business, or a combination of all of the above can help you significantly grow your money over a period of time.
Here are six important reasons why you should definitely take a shot at investments.
6 Reasons to Invest Your Money
1. Grow Your Money
Investment tools like mutual funds, retirement funds can grow your money significantly over a period of time. You can start investing with small amounts of money and increase it gradually.
2. Earn Higher Returns
Investing your money can help you earn a higher rate of interest. The higher the rate of interest, the higher returns you will get. Often, investments yield higher returns than saving accounts. So it is a good idea to explore different investment options.
3. Reach Your Financial Goals
Investments can help you plan and achieve your long term financial goals. Since you earn higher returns on your investments, you can use the money on bigger purchases like buying a house, buying a car or starting your own venture.
4. Save for Retirement
Investments help you plan for your retirement. Irrespective of whether you have just started working or you are in your 30s, you should consider planning your savings for retirement. And investments can be a great tool that can help you earn interest, accumulate wealth and live off the retirement fund when you eventually retire.
5. Reduce Taxable Income
As an investor, you can save up on taxes by investing your money. In India, under Section 80C of the Income Tax Act, you can claim deductions up to the limit of Rs 1.5 lakhs in a financial year.
6. Start Your Own Venture or Invest in One
Starting your own business or investing in another’s business requires investments. If you have been investing for some time then you can definitely look to expand your investments and bet on an exciting idea or project. You can also use this opportunity to advise your peers about smart investment options.
Remember: It’s never too late to start investing. Both types of investments (long-term or short-term) yield results, it’s up to you to decide which ones suit you better. So don’t let fear hold you back - start growing your money now!
