Another thing is that the vast majority of people spend almost all their money on daily expenses - food, clothing, rent, and often loans. This is a kind of dependence on the bank, the state, the place of work. And professionalism in a particular area is not yet a guarantee of good profit.
Every person in the modern world simply needs to learn how to manage their finances and increase them. Almost everyone periodically thinks about saving and achieving financial freedom, ensuring a comfortable old age, investing in the future of their children.
The state plays a certain role by allocating pensions to elderly people from a pension fund, which accumulates amounts of deductions from wages throughout life. However, the pension amounts are known to everyone - it is simply impossible to provide a decent old age with them. Many pensioners who have worked their entire lives live on the brink of poverty.
Why is the situation different in developed countries? Older people travel around the world and live a full life. And these are not celebrities or oligarchs - these are ordinary average people.
The answer is that in developed countries, investments play a huge role in the lives of the population. Up to 80% of Americans invest in shares of large companies and receive dividends on them.
The question of why you need to invest is not raised there - they start investing at a young age. Just look at the numbers: in the US, the volume of investments in investment funds is twice as large as the volume of bank deposits;
The investor gets the opportunity to receive dividends from shares - investment income, which in the future can be several times higher than the salary.
There are two main models of situations.
The investor spends only the profit, and keeps the main savings for descendants.
Thinking about why investments are needed in modern life, many come to the conclusion that this area is suitable only for the elite and those who initially have large capital. But in fact, you can get into the investment market with small funds if you use the help of a mutual fund (mutual investment fund).
The essence of such funds is the accumulation of shareholders' funds and their professional investment in bonds, shares or real estate. Some mutual funds also invest in credit, mortgage and other commodity-money instruments.
This is exactly how they invest in developed countries. The total amount of funds invested in the economy there reaches huge numbers. From this it follows that if we want to improve the standard of living in our country, we must invest as much as possible.
Invested funds work 24/7 for their owner, and then for their descendants. Investments are the basis for future capital and wealth growth.
We hope that now it has become clearer to you why you need to invest. Firstly, it is a mandatory skill for every person who wants to strengthen their future and current financial situation. Secondly, it is beneficial to the country's economy.
Investment income exceeding the salary is not a fairy tale, but real statistics. And do not think that only rich and influential people become investors. This is within the power of every person right now. For example, you can invest money from one thousand rubles in mutual investment funds. The choice is yours - invest this thousand in business or order rolls for the same amount in the evening.
Fighting inflation: Inflation "eats" the purchasing power of your money. Investing, as opposed to simply storing it, allows your funds to grow and outpace inflation, preserving and increasing their real value.
Capital growth: Investing allows your money to work for you. Thanks to compound interest, the income received from investments is reinvested, which leads to exponential capital growth over time.
Achieving financial goals: Whether it is buying a house, educating your children, a comfortable retirement, or simply creating a financial safety net, investing helps you get closer to your goals faster and more effectively.
Financial independence: Investing allows you to create passive income that can cover your expenses and give you more freedom in choosing your job, lifestyle, and time.
Risk diversification: By investing in different assets, you reduce the risk of capital loss. If one asset shows poor results, others can compensate for these losses.
Opportunity to participate in economic development: By investing in companies and projects, you support their development and contribute to economic growth.
Many people consider investing to be complicated and risky. However, there are many different investment vehicles suitable for different risk levels and financial goals. Start small, learn the basics, consult with a financial advisor, and gradually increase your investments.
Investing is not just a way to make money, it is an investment in your future. Start investing today to ensure financial freedom, stability, and achieving your financial goals. Don't put off until tomorrow what can bring you profit today!
I have long wanted to find such an article on finance and investments to get sufficiently detailed information on further actions and learn how to manage my finances.
Well-written and thoroughly researched, this article sheds light on new trends in finance and provides actionable advice on optimizing investment returns.
A great resource that emphasizes the importance of diversification and long-term planning. Real-life examples help dispel myths about the principles of smart investing.
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