Free Essay

Importance of Investment

In: Business and Management

Submitted By ektasethi
Words 543
Pages 3
Investing is very important now a days to survive. Here the importance of investment is stressed upon to make you understand your needs and goals.

What is "Investment" ?

Before you move on to know the importance of investment, you should know what it actually means. Many people think that they are investing their money when they hold few shares of a company.

But when it comes to investing, as low as a staggering 10 percent of the people only really invest and those are the only to survive in the long run. Investment does not refer to mere buying and selling the shares of a company.

But it means more than that of selling and buying the shares of a company.So now you might be thinking that if one doesn't sell or buy, how can one invest? I am not telling that investors don't buy and sell but what I mean to say is the real investor buys and sells his shares with a precise and ample knowledge and vision.

Investing needs a little amount of research on various elements which effect the stock market.

Importance of Investment

"The more you sweat in peace time; the less you bleed in the war"
What a quotation! This is applicable for all aspects of your life. If you don't invest your money and think that there will be no need of money in your contended life, then one day suddenly you will be in a pathetic situation where you need money for education or medication of your family member.

Then only you will realize the value of money. But dear friend, it will be too late to do anything and you will be in a deep trouble then. And you will be suffering for not investing your money in your life sooner or later. So it is better to be late than never.

Following are few of the many advantages of an investment in your life.

Financial Independence

First and the foremost thing is an investment gives you financial freedom. If you invest your money from the beginning, you need not to worry about the future financial needs. As future is uncertain, and there may be a situation in your life where you require a large amount of money to get out of that situation with minimal loss.

So to effectively protect yourself from such type of situation, you must inculcate the habits of saving and investing. It may be because of your children's education,marriage or medication. Let it be anything which demands lot of money, you may surpass it if you have invested your money from the beginning itself. Hence, investment gives you more financial freedom to rely upon.

Increases Wealth

Besides making you financially independent, investment makes you rich also. As you invest more and more money for a long time,it will definitely make you more richer. In the present generation, it is of utmost importance to be rich as it gives more benefits in each and every aspect of your life.

So investment increase your returns and at the same time make you wealthy. As you become more wealthy, you will have more financial freedom and vice versa. So wealth is also an important factor of our lifestyle.

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