Why you should Invest!
Investment have been the hot topic lately, but taking the first step seem really daunting. Here are a few factors to convince you to start this journey.
Investment have been a hot topic among young adults lately. Many are looking to start investing because you understand the importance of it or simply, because of peer influence and the idea of not wanting to lose out.
Taking the first step can seem really daunting, especially when it involves hard-earned money. Being a young adult myself, I can understand your fears. I have encountered many friends and family members who are too afraid to invest, afraid that they might be "burned" from investing. I hope this article can convince you to take the first baby step in your investing journey.
1. Inflation kills your cash
As time passes, your purchasing power decreases. For example, an apple today cost about a dollar and ten years later, it may cost 3 dollars.
You should have noticed that the same amount of food that you bought last time cost way more now. Or they serve you a smaller portion for the same price.
Investing ensures that you would be able to "beat" inflation and that your assets/cash value will not decrease over time but instead increase!
2. More money for your future self
It could be for your retirement, your next vacation or even your children's education. Who wouldn't want more money?
3. Earn while you sleep
This could be by far the biggest reason why one should invest. As humans, we are simply limited by our working hours. Effectively, it should be around 8 hours if you work from 9 am to 5pm.
Through investing, you will be happy to know that regardless of whether you are working or sleeping, your money is working hard for you instead of depreciating.
4. Invest in areas that you want to see changes in
Climate change is real. As a young adult living in the tropics, I am experiencing terrible weather, with temperatures being unbearably high. It will likely be worse in the future. Personally, I make it a point to invest in companies that help the world in transitioning to using sustainable energy sources such as solar, wind and even hydro.
These are 4 reasons on why you should invest! The reasons seem really simple but are in fact, important factors to remember. The first step is always the hardest to take, so I hope you take a leap of faith and start your journey into achieving your financial goals.
Do keep a look out for upcoming financial related articles as this article marks the start of my writing journey on financial related topics.
Photo Used: Jamie Street on Unsplash