Investing: What It Is Why It Matters And Why You Should Be Doing It

Have you ever thought about investing? I'm sure you have, but maybe you just didn't understand it. This year on the blog I plan to teach a lot about investing. In this first post of the new year, I tell you what it is why it matters and why you should be doing it.

Happy New year!! For the past couple of years, I have talked a lot about budgeting and becoming debt free. This year, I want to focus on growing your money through investing. So with that being said, this first post of the year I will give you an overview of investing. I’m sure some of my readers already know or at least have heard about investing. My question is, are you doing it? If not, you should be.

What is investing?

 A good example of investing would be a college education. You spend your time (a resource) in hopes of earning a degree and a good job after graduating (the future benefit). Although a college education is a type of investment, that is not what I am talking about here. I am talking about stocks, bonds, property and other things that have the potential to increase in value.  

In a financial sense, investing is when you commit money to a financial asset, such as stated above, stocks, bonds, financial securities, in hopes of receiving more money later.

Why investing matters

When people ask me why investing matters, I tell them it matters because of compounding. When I think about investing, I think of compounding and time. That makes it easier for people to understand why one would risk their money for a potential return. You may remember learning about compounding and interest in math class. The principle is easy, the returns you earn on money can be compounded and then start to earn returns too. When you give your money plenty of time to compound, the growth can become exponential.

Why you should invest

Who wants to work until they die? Okay, I know that was a little bit drastic, but we are living longer and our money should last longer if we don’t want to work until we die. Social security won’t be enough for us to live a comfortable life after retirement. Our money should last at least as long as we do or longer.

The bottom line is, you only make money two way’s by working for it and making it work for you. If you keep your money in the bank in just a regular old non-interest bearing account instead of investing it, your money is not working for you and you will never have more money that you save. Don’t get me wrong, I am all for saving money so having a savings account is not a bad thing, but why not take some of that money and invest?

By investing your money, you are getting your money to make even more money. Doesn’t that sound amazing?! It really does not matter how you invest, whether it be stocks, bonds, mutual funds, futures, options, precious metals, real estate or even your own small business, the goal is to make investments that will generate more cash for you in the future.

If you are still on the fence about investing or just want to learn more about investing, I invite you to take my FREE five-day course #Slayinvesting. In this Free course, you will go in depth about different types of stocks, bonds, investments and learn strategies to begin investing.

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