One of the most important concept we may have heard is – “Save money, don’t spend it all at once, save it for your future” Ever one must have heard some one saying this to you or others. Five years back my parents said me the same and I said what’s the use? If only I save the money is depreciating (as inflation keeps on rising) so why not save & invest!
Every one has a goal in life for example my goal is to buy a second home, which would cost me some XYZ amount in future for which I need to save properly and invest at regular intervals (Disciplined Savings).
The investment cycle : Earnings -> Savings -> Investing -> Earnings (Dividends & Capital gains). This is a continuous cycle preferred for long term investors.
Why do you invest?
Many people ask me this question and I provide one simple answer to protect & safeguard my future. The future looks uncertain Milk prices can surpass petrol prices so you need to save & invest to have a tension free future. Yes investing involves risk but the risk tends to diminish in long run.
To achieve your gaols you first need to properly plan down you goals write them on a paper, then think of how much would it cost you to achieve those gaols and how would you achieve it.
Well why do you invest? Share your views! Comment!Google+