Why Is Investing Important?

Before we learned of the importance of investments, there was savings, and everyone relied on savings for financial security. As time has continued to go by, people have now realized that saving is no longer sufficient and is not as useful as it used to be, for two reasons:

1. You lose the opportunity to earn more money with your money
2. Inflation is your sworn enemy

Clearly, it is better to have your money work hard for you than to let it lie around lazily doing nothing, after which it diminishes. The process by which you get money to work for you is what is known as investing. In more “bougie” terms, investing is simply committing funds to hold down shares, properties, or other kinds of assets with the expectation of profit or gain in the future.

 In this article, we’re going to look at why investing is important and why you should invest.

Why Should You Invest?

1.     Inflation is Your Sworn Enemy

If you live in Nigeria, then you already know how horrible inflation gets here. Let’s say that you save about ₦50,000 in your bank for a year. You are proud of yourself, and rightly so, until it is time to take this money to the market. At the market, you realize that a bag of rice was ₦20,000 last year, and now it is ₦30,000. You also realize that you cannot buy as much meat or even anything without getting shocked.

You will even try to fuel your car and realize that your ₦50,000 has disappeared. Whereas, last year, you would have been able to do much more with the same amount. Inflation happened, like cancer – a thief in the night.

If that same money had gone into something else instead of just saving, maybe stocks or even crypto, it may have appreciated, giving you some profit, and you may have comfortably beaten inflation, and paid for more things than you would have been able to if you had just saved the money.

2.     Financial Security

Investing is the shortcut to wealth. You benefit from the compounding of the profit, and your money continues to grow without much effort from you. This should be everyone’s goal, especially if you have financial goals.

You can easily reach these goals if you take investments seriously. Do you want to build or purchase a house or property? Do you want a solid retirement plan? Do you want to be able to build an emergency fund? Or make tangible academic contributions for yourself and your children? By investing, you are likely to achieve those goals faster, because your money keeps working to produce more money.

3.     Financial Discipline

Financial discipline is an important skill that should be cultivated, and one way to cultivate such a life-changing skill is through investing. As you learn to set aside an amount of money regularly for your investment ventures, it will become a habit to constantly think of profits and ways for your money to make more money.

You learn how money works and you put it to work for yourself

These are only a few of the reasons why you should invest, but there are just enough to get you to set aside some money and learn how to invest. If you have no idea where to begin, that’s not a problem. We offer investment training and education and guide you through making the most suitable investment decision for you. You should contact us to begin your journey to financial freedom.