Tuesday, 22 March 2011

Why Should I Invest Money in Any Investment Schemes

I know that some of my readers ever asked this question, why should I invest money? I have enough money to survive. Then why should I invest the money? Why should I waste much time to seek good investment methods? What is the need of my investment? Why should I take the risk of uncertainty?   I think some of you are already getting the answer and of these questions may not get a satisfied answer. I am sure that this article is enough to give you a satisfactory answer. Here we can see why you should you invest your money.

Why Should I invest money?

To keep the value of your money from inflation

If you think wisely and look around as an observer, you can easily understand that the money you have today will not have the same value tomorrow. Yes inflation decreases the value of money you Why should I invest moneyhave. If you have $1000 today and the rate of inflation is 8% the value of $1000 will be $ 926 next year and if the inflation continues at the rate of 8% every year your the value of $1000 will be $ 501 after 9 years when you compare with the money you have right now.  Near about a half of the amount. This will be happening to your money if you are not investing your money in any investment Schemes. But if you invest your money in any investment scheme which gives you around 8% income, your money will be grown up to Rs. 1851 in 9 years.  And the money value when compared with the first year will be about same as $1000. At least you can save your money from inflation. But if you try to invest your money with higher returns than the rate of inflation, your money value will grow.

To get a good return for your ideal money

When you keep your money ideally in a savings account, you won’t get much benefit. If you invest your money with a little bit more income than the rate of inflation you can save your money and also can enjoy the growth of money and money value. But you should consider the income tax also. For this purpose you can invest wisely in any investment scheme which has no tax for the income from such investment, or the investment with less taxability or an investment with high return.  If you have some ideal money or the money you should not need in the near future, invest in any long term high return investments and make grow your money. Then you may not ask why should I invest money?

To satisfy your future financial goals

This is the other answer of your question, "Why should I invest money". You might be aware that the above mentioned fact is applicable only when you have some surplus money and invest that surplus money. Then what do you understand, you should invest only from the surplus money? No, you have to accomplish so many financial goals such as marriage of self or children, education of self or children, buying a residential accommodation, Good medical facility to you and your family members, good retirement income etc. Etc. For satisfying these financial goals also, you have to invest money from your existing source of income. So you must invest from your counted bread, even if it is only enough for your daily needs. Then you should grow an investing habit which is helpful for your future financial needs.

Provide enough money for meeting uncertain future needs

Some financial needs cannot be predicted early such as medical treatment of any critical illness or accident, untimely death of the bread earner of your family etc., and  even life after retirement also uncertain up to a certain extent.  So you have to make enough provision for meeting such uncertain needs. Insurance and retirement schemes will help you in this case. Now you may know the answer for why should I invest money.

So invest your money and make a habit of saving and investment to get a good stern stand in your financial needs and emergencies. Think wisely and act wisely for a financial freedom in the near future. Now you got the answer for all your questions, why should I invest money? Why should I invest in gold, Why should I invest money in stock market? or Why should I invest money in Real estate and so on.

Why should I invest money in any investment schemes?

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  1. M.L. SANTHOSHKUMAR10 June 2011 at 04:34

    Dear Sir,
    I am proposing to start WINDMILL POWER PROJECT in our area. To which I need money as loan of Indian Rupees: 100 crores. If any investor is willing to give a loan please send to me Terms and Conditions so as to enable me to make further works. Thanking you,

  2. It is happy to hear that you wish to do a business. But for loan please approach any bank or financial institution with your details including project report.

  3. Yes it is a must that everybody should know about the need of investment.

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