We can probably just start and end this article with one sentence: You want to be very rich, and that is why you need to be an investor right now.
However, I always feel like having a goal of just “being rich” could have negative implications.
Without a specific goal, you’ll be less motivated to save and invest. It’s much more convincing to work hard, save a lot and invest wisely when you have the goal to “be rich so I can secure my children’s future” rather than having a goal of just “to be rich”.
Plus, without a specific goal, it would be difficult to determine when you should sell your investments and spend the money.
Of course, there are so many varied reasons why you would want to grow your money, but in this article, we look at the top reasons as to why most people invest.
If you’re not an investor yet, then maybe this can open your mind as to why it’s crucial that you become an investor.
If you are already an investor, then this can help you re-evaluate your goals and reasons in investing. Also, if you have someone you care about that you want to convince to start investing, perhaps you can send them this article.
In any case, here are the top reasons why most people should start investing immediately.
Reason #1: You Have Grand Dreams For Your Future
Most of us have big dreams that we want to accomplish before we eventually kick the bucket.
For most of you it would probably be:
- being able to travel around the world every few years
- retire early with more than enough money to do so
- have a huge high-tech mansion
- a collection of expensive cars
Your grand dreams might even be more about helping others by:
- setting up an education fund for the children of the less fortunate in your area
- buying huge areas of land to replant on and make sure they stay planted
- contributing to people when huge calamities strike
And of course, it can be a combination of dreams for yourself and for others!
Investing will definitely enable you to actually reach these goals (or at least faster than not investing).
Reason #2: You Want To Be Financially Secure
We all have problems and will always have problems, but wouldn’t it be great if financial problems are not one of them?
Because sometimes life just hits you in the face (hopefully not too hard and not too often!) It could be that you, or someone you care about, might incur large hospital bills, or maybe your house gets wrecked by some natural disaster.
By investing just small amounts regularly, you could save up enough to cover these unfortunate events, should they ever happen.
I mean sure, the chances of huge financial problems striking you is probably low, but it never hurts to be prepared.
We will never run out of problems, but at least money will not be one of them.
Reason #3: Investing Is Best Done Over The Long Term
One proverb I really like goes like this: The best time to plant a tree was 20 years ago. The second best time is now.
Investing is pretty much like growing a tree in that it takes time. If you do your best to plant one now and take care of it, soon you’ll be enjoying its fruits. Better yet, if you have planted a tree years ago, then it will have fruits that you can enjoy in the present.
A lot of people ask me, “Is right now the best time to invest?”. My answer is always “Yes!” because it’s always the right time to invest. You see, it’s not about when you start investing, it’s about how many years you’ve been doing it.
I’ve talked to a lot of older investors and when I asked them about their biggest regret, some of them answered that it would be “not starting early”. Had they started earlier, they would’ve been able to enjoy the fruits of their labor earlier as well.
So, one of the best investing advice? Start now, since even though investing is easy to do, it takes time to accumulate huge gains on the investment you have planted.
Bo Sanchez’s maid for example, took about 13 years to get to P1,000,000 while only investing about P2,500 per month. But if you ask me, waiting for 13 years was very well worth it.
Reason #4: You Want To Secure Your Children’s Future
This mostly only applies to those who have children that are still years away from college. It’s also best to start investing for this reason at the time when your child is born, or even way before that.
You see, the times have changed. Prices for a college education and housing has increased quite a considerable bit, but salaries do not seem to catch up.
Essentially, by the time your children at are college, your salary alone might not be able to send them to get the education they want at the school of their choice.
If you really want to give them an edge in life, you can even start to help them save up for a house of their own.
Is all that starting to sound expensive? It is.
That is why so many parents were so inspired by the story of other parents that decided they should start investing even just small amounts of money every month to a fund for their child. When grandparents and other family members would give money for the child, those go to the fund as well.
The fund was invested mostly in the stock market, which is great for long-term investment like this.
When their child finally tuned 18, they had more than enough to pay for college, plus some extra to start buying them their starter house.
Reason #5: You Want To Make Use Of Opportunities Provided To You
I could probably take an entire article dedicated to just how there is so much opportunities given to you to encourage you to invest, and so that you can invest properly and successfully.
We don’t have the time for that right now though, so let’s just go over a few things.
First off, your country’s economy is probably booming. In the Philippines for example, a 6% growth in GDP has been the norm for the last few years, and will likely stay at 6% or even improve over the next few years. Investing takes advantage of these growth as investments will grow together with a country’s economy.
Another cool thing about investing is that there is less tax you have to pay. There are usually only very minimal taxes you need to pay for investing in the stock market. REITs, in particular, are not even required to pay multiple kinds of taxes, which means you get to keep more money when investing in them.
Lastly, investing is so easy now. You used to have to leave the house or to talk to someone over the phone to invest. Now you can just do it anywhere with a few clicks from your phone or laptop!
Not investing means wasting all these opportunities.
Reason #6: Investing Is Super Easy and Cheap
I’m being serious when I say that a well-trained 10-year-old can definitely invest well. No, seriously. That’s how easy investing can be! It’s also cheap and you can start with very little amount depending on what investment you choose.
You do NOT need any formal education and you definitely do NOT need to graduate from a business course! In fact, a lot of the investors I know didn’t even go to college and they invest better than other people I know that are graduates of finance and accounting.
Also, you will not be alone. A lot of brokers have recommendations on what stocks would be good investments. Not to mention this blog will also serve as your guide to proper investing!
In fact, that’s why we made this blog. We see so many people employing difficult, time consuming and sometimes, just plainly weird ways of investing that either does not work or is very inefficient.
Investing can be easy, take only about 10 minutes a month and you can do it anywhere with an internet connection.
We made this blog so that anyone interested have a guide that they can learn from before they start. Then, when they are ready to invest, they can use this to improve their investing knowledge further and also as a guide they can look at just before buying a stock, mutual fund, bond, REIT and all other investments that we will cover.
Sure, proper investing takes time to learn properly, but it will be all worth it 10 years from now when you’ve already accumulated a good amount of fortune, plus a good mastery of intermediate investing.
Well there you have it. Investing is awesome as it enables you to reach your goals faster than not investing. Investing also makes sure that, in the future, money would not be a serious problem for you and your family.
And if that’s not enough, investing is also really easy to do!
These are just some of the most common and important reasons to invest. We would definitely like to know your reasons too! Comment below why you started investing or why you want to start investing!
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