3 Brilliant Reason Why You Should Invest Your Money

3 Brilliant Reason Why You Should Invest Your Money

What kind of investment did I do?

First of all, I consider myself an investor although I am just a very small investor. I invested in the smartphone app called Adoi Chat, Zetanet – the new internet 2.0 and also Skipjack Fund of Funds.

 

Why You Should Invest too?

 

1. You will have a passive income.

Yes, with the right way of investing you will have a second passive income. But, if you are wondering what is the difference between passive and active income is? Active income is the money you get while you work for it while passive income is the income you get without working for it. Meaning that your money is the one doing the working for you.

However, proper guidance in investing is important since you can lose money while investing. Like Warren Buffet once said, only investing in something that you understand. If you did not understand about it, read and study about it first. I am not going to ask you to do the same investment as me although I believe I can make a lot of passive income with my investment. Why? Because I know it is wrong to do that. Although I recommend you to invest using Dollar Cost Averaging strategy .

 

2. Your back up plan.

As a normal person who has a full-time job, you can never know how long you can stay in a job because sometimes our plan can fail badly. For example, if we are sick or get layoffs and cannot work anymore, it would be a disaster but still, we had to accept it right? Thus, this is where your investment profit come in very handy. This is why investing is very important especially in our era where the economy is volatile. We need a plan B if anything happens to us.

 

3. Retired rich.

I once heard Ben Affleck said in a movie that those who said “Money is the root of evil” usually don’t have a lot of money. I mean who wants to stay poor right? Everybody wants to become rich and the best way to help you retire rich is through investing. Unless you already own a million dollar businesses.

However, you need to know that rich people invest very carefully. They understand perfectly what kind of investment and how much cash and asset allocation they have. This is very important to know before investing because it doesn’t mean much if you have  1 million USD asset but 10,000 USD in cash only. When I say rich, it means you should have a lot of money, not just asset. CASH is king!

 

I truly believe that investing is a must for everyone. As long as you have the money to invest, then you should invest.  One more thing, invest as early as you can because time plays a huge role in investing. The rule of thumb would be the longer you invest, the more money you can make because of compound interest.

 “Compound interest is the eighth wonder of the world. He who understands it earns it… he who doesn’t… pays it.”- unknown.

 

P.S. If you are thinking about what book to read before investing, I suggest you to read MONEY Master the Game: 7 Simple Steps to Financial Freedom and The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness. Both of these books is a very great read.

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