How do you get a perfect life? Score good grades, get a nice job, a loving partner and that’s it, right? Wrong. The truth is that life doesn’t always go in a straight line. While creativity and hard work might get you grades, they’re still not enough to offer you a successful life. To be successful, you always need to do things a little extra. And nothing beats investment when you want to do extra. So try to understand Why is Investing Important?
Investing has become an essential field to be a part of regardless of what you do for a living. Let’s say, for example, that you do end up getting a good job with a nice salary. However, the sad thing is that it takes way too long for you to reach at your maximum potential. Not to mean any offense to the corporate world, some people do end up making a lot more given their potential. However, this era demands you to be a multi taker in order to be truly successful. In fact, many firms have introduced the concept of stock options for their employees. This is because, other than the many benefits of investment, a major one is that its time savvy. Since, organizations want their employees to give their hundred percent, they wouldn’t want their employees to engage in other activities such as side jobs or entrepreneurial activities. However, investing doesn’t require much effort once you get the hang of it. And if excelling at organization means more revenue from stock options, then all the better for you and the organization. Hence, investing is something that even your corporations will both approve and promote to you.
Now let’s say that you aren’t into the corporation life style and choose to have your own business instead. Even then investing is crucial for you. This is because business require constant cash inflows if its ever going to succeed. So you shouldn’t expect to become the next billionaire just like that by starting a good business. Other than that, one of the benefits of investing that we will also discuss, is the market insights that you can get from investing. A good business man should always know what’s trending in the market and what’s not, and being part of investing does just that. So, regardless of your career choice, investing always remains a viable, and a highly rewarding, option for you.
But let’s say you don’t have yet started your career and the only income you have is your pocket money? Can you still be a part of investing? The answer is a strong yes as now many brokerage firms, online investing and other vendors have started to offer the option of micro investing. The idea is that you can start investing from even a lump sum of money and start your way from there. Then, as the sum of money grows, so does your revenue from investing. This option is highly recommended to students as micro investing helps them start from a small capital, one that they can easily afford, and with time, generate more and more revenues. Hence, no matter which field or stage of life you belong too, the investment business is still there to help you achieve your goals.
What Investing really is and what are its Options
To answer the above question, why is investment important, we need to first understand what investment is and what options do we have to invest in. To simplify, investment is basically to make money out of money. When you give your friend some money for his startup in exchange of a percentage from revenues, you are investing in his business. If you are buying something with the purpose to sell at a higher price, then again you are investing in those goods. Therefore, investment is basically growing your money by using it in different modes. A brief explanation of each mode can be as described below.
This is the simplest type of investment requiring little to no effort. All you have to do is put your savings in a bank and keep on getting monthly and yearly gains. This is most suitable option for you if you have a decent amount of saving that you don’t want to use currently as it is safe, reliable, and normally has a constant fixed increase. However, there are certain downfalls for this option too. For instance, it requires a larger sum of investment, has a relative slower growth and fixed but a lesser rate of return as compared to other options.
Stocks & Bonds trading
Another option for you to invest in is Stocks and Bonds trading. This is the most common type of investing as it has a higher growth and ever increasing returns. But there are some downfalls attached too. Unlike saving banks, trading requires more skills as there are less qualified experts to help you. Other than that, options like micro investing and online investing are available in trading, and therefore, can be a great tool for beginners.
Forex trading is almost like stocks trading with the same type of advantages and disadvantages. The only difference between them is that instead of shares, no you will be buying different currencies. Stock trading can be highly rewarding if you equip yourself about the economies conditions of various countries and invest accordingly. Although, it too is as risky as stock trading, it can be highly rewarding with only a few basic knowledge about the economic conditions. Other than that, there are many online investing applications that help you in your journey of forex trading and hence can be a better platform for investing.
In this type of category, you can start investing by buying goods, lands and other essential raw material and hoping they will increase in price. The biggest example of this can be from the oil sector. Since, the oil prices are almost always fluctuating, there can be a huge potential of investing better through this sector. When the prices decline, you would want to buy more barrels of oil so, when the prices increase, you can sell them for a higher price.
Benefits of Investing
Regardless of which platform you use, we cannot understand why investing is important without discussing its advantages. Therefore, here are ten top benefits of making investing a part of your life.
As discussed, micro investing is a highly liked feature among the investors. This is because new investors are often scared putting all or most of their money on line. In other cases, students face the barrier of a higher required capital for initiating investment. However, through micro investing, it becomes quite easy for us to simply start our journey with as minimum as we want.
Easy to Understand (Why is Investing Important)
The next advantage is that learning the art of investing is quite easy. It will be a plus if you have studied finance, however if you’ve no, even then investing steps and tactics are fairly easy and understandable.
This is also why organizations don’t put restrictions on employees from investing as it doesn’t take their concentration away from work. A few good lectures on investing and you’re good to go. Some organizations go even beyond, as also mentioned above, to offer stock options, company’s own stocks. By doing this, organizations are able to make employees work on the betterment of the organization while making the most out of it.
Various Platforms to Invest On
Unlike the various options of side jobs, investments offer a variety of different platforms. Many of these platforms have been discussed above along with their advantages and their disadvantages. Now it’s up to you which platform you want to work on.
This doesn’t mean, however, that you only start to stick on to that particular type of investment without any diversification. Instead, as you gain more experience, you should start utilizing your resources into various other options to make the most out of your investments
Shifting from Investing is Relatively Easier
This is another advantage of investment. Basically, investing is all about learning from bad decisions. We all make bad decisions sometimes but it is important for us to have some control over that bad decision.
Consider for example that you invested more in forex then you should’ve in stocks. Then there is nothing to worry about as shifting your resources is fast and easy. Basically, since the stock market is almost always alive, selling your resources from any category is not that difficult. Therefore, any bad decision that you made can be rectified and corrected.
Easy to Manage with Work
As also discussed above, investing is easy to manage with your work routines be it in the corporate, business or academic world. All you need is a cell phone or a laptop with good internet connection and you are good to go. After becoming adept at spending, all you would need is one look to decide whether or not to invest in a particular type. Hence, you will require little to no effort for managing those resources.
This makes it easier for busy investors who have long jobs or even students with their never ending assignments to manage their investment. Now, this advantage has reached its maximum potential since the advent of online investing. Now, only through a tap on your phone and you will able to gain all the knowledge that you need. With these continuous improvements that are being made, we can expect managing investments even more easier in the foreseeable future.
Achieve Financial Goals
We all have goals that we plan on achieving. However, many of these goals seem highly unlikely to achieve given the current situation. As growth in most sectors is low, employees end us giving up on everything
However, investing also helps with saving money to acquire all those goals that you want. Basically, it provides you with more earnings then most businesses or corporations to allow you to chase your goals and reach your success.
With investments, you don’t have to report to any office or allocate a fixed amount of time in order to make wise decisions. You can simply make decisions at the touch of a hand through a simple application and that is it.
Therefore, with investments, you don’t have any boss or department to go too. You can simply start investing at home without having any of your other parts of life disturbed. Therefore, this option is again suitable for those people who believe they want to do something extra but have a limited time to offer. Therefore, people in job careers and students would be highly interested in this category.
With investments, it is very easier for you to get rich quick by passing the many barriers that you would otherwise face. This makes investment stand atop on almost all of the other sources of incomes.
This is because in investments there is no fixed price and you can easily trade at higher prices. One you master the art of better investing, you will be able to manage your investments and be a leader in the investment business.
It’s not just about money, as the company with the most lucrative stocks can also be the most profitable company. That’s why, investments also broaden your vision about the business world itself helping you tackle and incorporate the importance of global Knowledge.
Lots of Money
Lastly, why investing is important is because of its higher profits as compared to other means. Therefore, no matter how much money you make, through processes such as micro investing, you should definitely be able to make a lot of revenues.
Therefore, investing should be a crucial element of any person’s life be it; corporate life, Entrepreneurial or even the student life. By making investment a part of your life, you can start your journey of doing a little extra and start to make the most out of your saving. Secondly, the various options of investments offer you many platforms to experiment. After you’ve mastered a few, or better yet, mastered the art of diversity, you are ready to make the most out of your investments. Finally, the vast amount of benefits of investment are a great motivator to get to know why investment is important.