The Importance of Investing?

7 mo
4 Min Read
766 words

The Importance of Investing.jpg


Investing can be described as the process of buying assets such as Land, Stocks, Bonds, etc to generate future returns. This sounds so damn easy but rest assured it is not an easy task to achieve as the majority of the people in India actually never beats INFLATION and by which on a default basis they are unaware of the actual Importance of Investing.


Fixed Deposits Are not Investments

This may sound contradictory to Investing but when it comes to Fixed Deposits they have almost never beaten INFLATION which means even if you lock up a Sum of Money for 5 years you will still be losing money, plus you also have to pay Capital Gains Tax which is another Loss for you. I do understand the safety of Fixed Deposits is indeed comforting but if you are interested in Investing in FDs of a certain Bank then why not buy Bonds of the Same Bank on the Open Market that offers at least 1 percent extra returns than FDs.


As you can see you can get 6.05 - 7.25 percent Annually if you Invest in Bonds of the same Bank you are doing your FD in. FYI currently the highest Interest rates on SBI FDs are 5.5 percent provided you keep that for over 5 years.


Investing is for All

I remember my Mom once said to me that we are Middle-Class people so dabbling into other Asset classes like Stocks or Crypto is just not made for us as it requires big sums of Money at that time I thought she was right but now I know that there are no limitations that only the Rich can Invest. Yes, I can agree slightly with my Mom as at the time when they were Young there were not a lot of tools for them to freely Invest in other Asset Classes, but now we have several services that allow us to Invest in whatever we like and with whatever amount we like. So the STIGMA of INVESTING IS FOR THE RICH is just outdated.


Financial Freedom

This is a term that has been going around the Millennials a lot and in my mind, the definition of this would be the fact that I have an Amount of Money saved up which grows at a rate that is more than enough for me to run my life smoothly and not worry about work anymore. Basically, the Interest I get from my Principal Amount runs my Family comfortably all while I am working as well and that is what I would consider Financial Freedom.
But to achieve this Financial Freedom you have to Invest in Assets that give you proper returns and you can only do that after properly doing your own research and formulating a path for yourself.


Realisation of Investing

This is something that I developed due to one of my Company's Distributors. He actively asked me if I was making any INvestments or not and truthfully at that moment even though I was making decent money I wasn't Investing a Single Rupee. So he was definitely one of my Triggers as to why I started Investing and how I understood the Importance of Investing. So that is the reason I try to convey the Importance of Investing to everyone I know as I might be the trigger for someone to start their Investment Journey and they will definitely be grateful to me as I am grateful to my Distributor who taught me about Investing.


For Future

When you are Investing it is usually for your Future or your Family's future so this in itself shows the Importance of Investing. In my case, I kid you not my current net worth is more than my parent's net worth and the reason behind that is that in past the Mentality was that you Invest in your Children and when they grow up they take care of you. I am not saying I am not going to take care of my parents but I would have been a little extra happy if I knew my Parents are taken care of. Now I even try to make Crypto Investments for my Parents as Crypto is the only Asset that can make a Retirement Fund for my Parents in a short period of time. So yeah it is definitely important for you to Start Investing to consider, as that determines your Future.


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