{"id":10316,"date":"2018-05-01T10:00:35","date_gmt":"2018-05-01T04:30:35","guid":{"rendered":"https:\/\/www.moneyworks4me.com\/investmentshastra\/?p=10316"},"modified":"2020-02-25T15:32:06","modified_gmt":"2020-02-25T10:02:06","slug":"why-do-your-need-to-invest-your-money","status":"publish","type":"post","link":"https:\/\/www.moneyworks4me.com\/investmentshastra\/why-do-your-need-to-invest-your-money\/","title":{"rendered":"Why do your need to invest your money?"},"content":{"rendered":"

Invest to secure your future and fund dreams<\/span><\/h2>\n

\u201cWealth is a person\u2019s ability to survive so many number of days forward\u2014or answer to if\u00a0one stopped working today, how long could the one survive?\u201d<\/em><\/strong><\/span><\/p><\/blockquote>\n

It is obvious to most people why they need to save. We save\u00a0<\/em>to,<\/p>\n

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  1. Provide for a Secure Future:<\/strong>\u00a0For Health, Children\u2019s Education, Life after retirement, and<\/li>\n
  2. Fund Your Dreams:\u00a0<\/strong>Buy a home or a car, start a business or have a certain lifestyle<\/li>\n<\/ol>\n

    Saving a portion of your current earning is absolutely necessary. But is it \u00a0enough? Inflation erodes value of money – at 6% inflation, 10 years from now, your saving will be able to buy only half of what you can buy today. And, if your FD gives 6% returns after tax, then all you have achieved is to maintain the value of your saving at the same level as today. What your money earns for you makes a big difference to how well you meet your future needs and dreams.<\/p>\n

    One lac of saving @ 6% will become Rs. 3.2 lacs after 20 years, but will become Rs. 9.6 lacs @ 12% returns. That\u2019s 3 times more, giving you Rs. 6.4 lacs additional buying power beyond inflation. See it in a different way. Suppose you need to have Rs. 5 Cr after 20 years. You will need to have Rs. 1.5 Cr today, if you earn 6% interest per annum. But you need only Rs. 50 lacs, if you earn 12% returns. The effect is equally dramatic when you do an SIP that earns you only 6% versus 12%. In short, earning 12% returns will make many of your future goals possible.<\/p>\n

    To earn returns above FD or inflation rates requires you to invest.<\/span> <\/span><\/h2>\n

    Investing means making your money work harder for you \u00a0to generate more money. The\u00a0objective of investing is to generate good returns that help you beat inflation,<\/u><\/strong>\u00a0and create wealth in the long run.\u00a0Investing is not a get-rich-quick game, it\u2019s not about making bets or taking chances, it\u2019s not speculating.<\/p>\n

    In fact, the Rule #1 of Investing is \u2018Never lose your money!\u2019 Hence, when investing, we say\u00a0good returns consistently, & not extraordinary returns once in a while.\u00a0<\/strong><\/p>\n

    View this interesting video\u00a0<\/strong>to reinforce your understanding on\u00a0Why should you invest your money<\/strong>?<\/p>\n