Save and Invest for future is critical as most of us already know it. Do all of us really save and invest our money in right options?
The simple answer is NO. However, most of us do know that saving money is vital for our future while most do not invest money in the right option.
Saving money in regular bank account can be difficult and growth in regular savings is very less.
Save and Invest your money in right options can be very fruitful for you in the future, so today we are covering 10 reasons why you should invest for your future.
Live freely after retirement
It is not hidden that all of us have to retire at a certain age, most of us may take retirement at the age of 55-60, but retirement does not mean your financial needs will be reduced.
You will still have to take care of yourself or your family even after retirement in this scenario your saving come handy, if you have saved enough money than you can live freely even after retirement.
If you have not done savings than retirement can be depressing and may bring financial problems, so it is necessary to save money so that you can retire happily one day.
Handle your responsibilities well
When you are young at that time obviously your parents have to fulfill your financial needs. However, at a certain age, you have to get marry, and you will have children, at that time you will have to take care your family.
You will need money to handle every major event of your life such as kids fees, buying house or house renovation, personal expenses, buying car or any sudden financial need you will require money to handle all these major events of your life.
If you have a good amount of saving than you can easily manage all these expenses.
Make more money
Save and Invest your money let you earn more money from your savings. Let’s say if you invest your saved money in mutual funds, gold, fixed deposit or any other financial instrument than it will enable you to earn more money with your savings.
Your investments provide you money in future which will help you to finance your major expenses.
You can start your own business
There will be a time in your life when you will be retired from your job or even before retirement if you wish to start your own business which will require a lot of money.
If you have a good amount of saving or investments than you can start your own business at any time of your life.
Your own business can bring more progress and financial growth in your life, however if you had not saved enough money than it can be hard for you to start your own business or startup.
Saves you from debt
Your financial savings and investments saves you from debt traps. Many of us face emergencies in our life, such as medical emergency, vehicle repair or any sudden expense required by your family in that case if you have done savings than you can easily handle emergencies.
However, if you have not done savings than you may end up borrowing an emergency loan which may lead you to a debt trap. Your savings are always helpful in emergencies.
Fulfill your dreams
We all have dreams of buying certain material objects or visit a dream tour destination.
Most of us want to buy our favorite car, mobile phone, laptop or any other materialistic object but buying any of these things required money and sometimes your average budget doesn’t allow you to purchase these objects.
Meanwhile, if you have savings than you can buy any of your desired object at any time without hesitance but if you don’t have saving than you may have to compromise with your dreams.
Most of us are doing jobs or running own business, so we never faced economic downfall, but is there any guarantee we will not face economic downfall in the future?
The Simple answer is No. As entire world seen COVID-19 pandemic and global economies faced sharp downfall, peoples lost their jobs and business were shut due to nationwide lockdowns.
If we have enough savings than we can face these types of situations easily and can run household with financial shortage, however if we don’t have savings for such situation.
Financial freedom is essential in life to live peacefully. Most of us usually do full-time jobs to run our household but do we earn enough to run the household smoothly?
For most answer will be No. Rising rates of inflation and family expenses make it hard to manage all your expenses from regular salary.
Meanwhile, if you have savings you can invest your money in monthly income plan of mutual funds which will provide you smooth monthly income so that you can manage all your expenses smoothly.
Your investment grows
When you are investing a small amount of money per month in good option such as mutual funds, your investment will not remain small after 10-15 years.
Let’s imagine you are planning to invest 1 lakh rupees in mutual fund for 10-15 years, will it remain 1 lakh after 10-15 years? Your investment grows in mutual funds and most likely you will get 1.50-1.70 lakhs after 10-15 years.
Peace of mind
Peace of mind is crucial in life but if you have financial problems in life or not having enough savings than you cannot attain peace of mind.
Once you know you have enough wealth as back up than you can live peacefully or retire peacefully without worrying about your or your family’s expenses.
It is important to save enough money as back up so that you can live a worry free life.