Why Should I Invest

Investing may be foreign to some, but it is worth considering. There are several benefits associated with investing that should not be overlooked. Knowing why you should invest is the first step in securing your financial future.

Money Doesn’t Multiply on It’s Own

If you stuff your money under a mattress, it will never have a chance to grow. Inflation is bound to happen and the money you put away will not be worth what it was when you first earned it. Investing gives you a chance to earn more money which will provide the extra money you need should inflation occur.

Preparation for the Future

College expenses and the amount of money needed to retire are at an all time high. Chances of you saving enough money to completely cover these future expenses are slim if you don’t put your money to work for you through investments. There will come a time when you won’t be capable of working any longer. Investing will allow you to take the money you did work for and multiply it so that you have the money later in life when you need it the most.

Free Money

Lets say you want to prepare for a roof replacement in 20 years. You estimate the cost will be $15,000. You can divide $15,000 by 20 and put away $750 each year. Now lets pretend that you chose to make investments with the money each year. Even at a small rate of return you can reach your goal five years sooner. This is essentially like getting free money since you won’t have to keep working as hard during the last five years to meet your goal.

In conclusion, there is no benefit in not investing, as your money will never grow. It will also be extremely hard to get ahead and provide for future needs, not to mention that fact that you will literally be throwing away free money.