Thursday, 23 December 2010

Why Should We Invest Our Money?

No doubt this is a good question.  You are making money with your hard work, physically or mentally. Whatever may be your method of making money you and I need money to survive in this fast developing world. Recently we all witnessed that the value of all necessary items are going upwards. So we are aware about the value of money. The money we make with our hard work, spending for our daily needs and we help others to get money. But we know that we can make money with our hard earned money also. This may called investing, business etc.

In business we spend money for earning money. We should spend money, time and work for doing a good business and we can harvest profit.  For investing also we should spend money by way of depositing it in any financial instruments such as stocks, mutual funds, money market instruments, government securities etc. But in investing we must not do more to grow our money apart from business. Just find out suitable investment scheme and deposit money, the money will grow without our effort.

How do we know where to invest? We need to learn more for answering this question. Yes we need more knowledge about investing our money. Those who know the right way of investing became richer and others may become poorer. Let us remember the Bible verses Mathew: 25: 27-28 “Well, then, you should have deposited my money in the bank, and I would have received it all back with interest when I returned. Now, take the money away from him and give it to the one who has ten thousand coins.”

You may feel that this is injustice. But this is actually happening. Those who do not invest their money in right way spend their money and somebody else will earn more from that money. So learn how to invest your money well.

If your money is lying idly in that Savings Bank account you can hardly earn around 2% to 3 % in the form of interest. But if you deposit it in any fixed deposit scheme in the bank you can earn around 5% to 6%. But if you invest it in any government securities you can earn around 8% to 10%. If you go forward and ready to bear some risk you can invest in mutual funds and can earn a minimum of 15% to 20% and in shares you can reap more. But the chances of losing money are also there in stock market and mutual funds.

For getting more profit from investment you must learn how to invest maximize your profit from investments. You have to study more through more reading and research in the stock market and mutual fund world. Now you are in the beginning of the way of investments. Go ahead and learn more and at the same time start investing from your hard-earned money to make money without much difficulty. Hope that the New Year will teach you more about investments and wish you a good investing future.

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