As you get older, you become more intentional, especially if you want to make the best out of life. A part of being intentional is financial discipline. This includes investing.
There are many reasons why you should
invest and start right away. Read this article to learn the most important
reasons to start investing right away.
7 Reasons to Start Investing Right Away
1. To Beat Inflation
As of this article, Nigeria's inflation rate is 33.88%. Just in case you don’t know, this means that the prices of goods and services in Nigeria were up by at least
33.88% in one year. Therefore, something worth ₦1000 a year ago is now worth at
least ₦1338.8. This is a significant increase. Now imagine what was worth a
million last year.
How does this affect you? It means that
with your ₦1000 a year ago, you can no longer afford what you could have afford
with the same amount. Therefore, you will become poorer and poorer if you do not find a way to beat the inflation (i.e., make your ₦1000 rise above ₦1338.8).
Investments help you beat inflation, as
multiple assets offer returns exceeding the inflation rate. For
example, when analyzing a stock, you can look at its expected returns. Any
stock with expected returns higher than your Inflation rate, all other things
being equal, is a good investment for you.
You can learn more about the expected
returns of a stock by reading this article. You can also see the expected
returns of any stock of your choice in real time by searching for that stock in
the Assessworth platform.
2. For Your Long Term Financial Growth
If you simply want to grow faster in your
life, especially in comparison with people who do not invest, you need to start
investing. Investing ensures that your money grows while you grow. Without
investing, your money grows because you grow (i.e., it 100% depends on your
inputs).
3. Generating Generational Wealth
You’d have loved it if you got an
inheritance from your parent, grandparent, or an ancestor, right? Well,
inheritance is simply the proceeds of past investments. Want to know how?
It does not matter whether you inherited a
shirt. That shirt is an asset that was bought (or simply owned). When you buy
an asset, maybe a stock, you own the asset. It is the same thing.
The difference between the stock and shirt
is that one is exchange-traded and its price is well recorded.
If you want your wealth to transcend
generations, you must start investing today. Let the generations after you
benefit from what you would have loved to benefit from. Don’t you think?
4. Passive Income
Yeah, you don’t want to work and keep
working. Even if you love working, you’d surely appreciate it when your wealth
increases without your input, right? That’s passive income for you.
If you want passive income, invest. It does
not matter how small the returns are, you’d surely get more than what you’d
have gotten if you did not invest. Awesome, right?
5. Higher Returns Than Savings
If you keep money in a savings account, you
most likely will not get over 6% in returns. Let’s look at this from a
financial perspective.
Assuming the bank does not collect any
charges or fees and your money only increases, your ₦1000 kept in the savings
account today will be ₦1060 after a year. Well, we are still grateful to the
bank for their addition. However, comparing ₦1060 with ₦1338.8 which the inflation
rate demands shows us that you got poorer.
You cannot beat inflation and retain your
wealth by saving money.
6. Future Security
When you combine passive income,
generational wealth, high returns, and financial growth, you can tell for sure
that you’d have a safer tomorrow if you invest than if you do not invest. So
long as you stick to your goals and have discipline, your tomorrow will be
better indeed.
7. Financial Discipline
Speaking about discipline, you can become
more disciplined as a person when you start investing. You learn to control
your spending, become more intentional with your wealth, and even decide the
best investment strategies for you.
To become a better person for the sake of
your tomorrow, start investing today.
Conclusion
What do you think? When will you start
investing? Remember that if you need a buddy to guide you through the world of
investments, we’re always here for you. Sign up on the Assessworth platform right away to get started.
