The world is full of investing advice. What you should invest in. When you should invest in it. Who should manage your investments. Even where in the world your money should be invested.
It gets overwhelming fast, especially when you’re a new investor. And the truth is, none of it means anything until you answer the most important question: why should I invest?
To Save for the Future. At its most basic, you invest to put away money for your future goals. Investing ensures your treasured savings don’t just sit there, they grow. Which brings you that much closer to achieving your future dreams and goals.
To Maintain Purchasing Power. Money you have today won’t have the same value 10 or 20 years from now. The effect of inflation means your dollar won’t buy as much as it used to. If your long-term savings aren’t invested in something that beats inflation, your money is losing value.
To Achieve Flexible Choice in your Finances. The ultimate dream is to be wealthy enough that your choices are not limited by your financial situation. You want to be able to take vacations, retire when you want to, donate to charity, and anything else your heart desires. And when that’s all over, have something left to give to your loved ones when you’re gone.
Investing is the best way to ensure your long-term savings not only grow but maintain their value and make your dreams come to fruition.
Once you understand why you want to invest, the other things become much simpler. After all, it is much more important that you are invested than what you are invested in.