What’s the hype about stocks, right? Stocks may or may not be right for you. How can you tell if they are right for you? Here are five reasons why you want to consider buying the shares of a company:
5 Reasons You Should Buy Stocks
1. Beating Inflation
What is the current inflation rate of your
country? That rate tells you how much value of your wealth you will lose in a
year to come if you continue holding the wealth in case.
In simple terms, if you hold cash and your country's
inflation rate is 15%, by next year, your cash will have lost its value by at
least 15%.
To help beat inflation, you must invest
your money. One of the major forms of investment is equity investment, so if
you want to beat inflation, purchase equities.
2. Building Sustainable Wealth
The returns of equity are numerous and can
compound over time. Because of the nature of equity investing, if you can
maintain a stable rate of return over many years, you’d be surprised by the
amount of wealth that you can gather over the years.
3. Earning Passive Income
When you purchase some stocks, they may
give you dividend payments. How awesome would it be that you do nothing but get
paid? You are getting paid simply because you are a part owner of the company.
Awesome, right? Don’t sleep on it.
4. Company Ownership
Remember that stocks are simply units
measuring your stake in a company’s ownership. The more stocks you purchase,
the more stake you have. If you have a favorite company, purchase its stocks.
5. Liquidity
Stocks are preferred to so many other types
of investments because you can sell your shares whenever you want. This means
that your money does not just compound over time, it will become available to
you when you want it. It is cool.
Conclusion
Stocks are useful, right? Thankfully, the
Assessworth platform has all you need to start your equity investment right
away. Sign up and enjoy a risk-free investment journey.