Home My Finance Investing Why Invest? 5 Crucial Reasons

Why Invest? 5 Crucial Reasons

falling money over globe symbolizing investment
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I created this corner of my blog not because I consider myself a personal finance expert but because I hope to get better control of my finances. Yes, they say happiness cannot be bought by money. But I beg to differ. There are some things that make people happy that require money. For me that is travelling (as you may have noticed in this blog, that is my main passion). And yes travelling does require money (for food on the go, plane and boat tickets, etc.) So yeah, it stands to reason then that Finance is a subject matter that is important to me.

And when it comes to personal finance, the aspect that I am most interested in is investing. Here are the main reasons why I see this as crucially important:

1. More time for pursuing passions.

The way I see it, if we are financially well-off through our investments, then we don’t have to have a full-time job. We’ll have enough money tucked away for rainy days and ideally, we would have health and life insurance for when we get old or sickly, whichever comes first. Since we don’t have to worry about these things, we’d be able to pursue our passions. You might finally be able to study that course you’ve really wanted, learn to dance or sing, live or study in the country of your dreams or train for all the marathons you want. For me, I’m sure I’d be traveling all over the world!

2. More time to spend with family and friends.

With money working for you instead of you working hard for the money, I bet there will be plenty more opportunities to revisit abandoned bonds and form new ones. There will be more time to talk to family and hang out with friends, more time to do worthwhile activities together.

3. Investing makes you open to compound interest.

Whether mutual funds, stocks, government bonds or properties, it is just natural that these increase in value in the future (granted of course that these are wise investments and not those that fizzle out eventually or are scams). The earlier you invest in life, the more compound interest you can take advantage of. Basically, unlike time deposits or savings accounts that accrue minimum growth in years, investments can grow exponentially in just a few years, depending of course on your risk appetite and choices. Yes, there is risk, but life is always risky and no pain no glory, right?

4. Security.

Investments are great tools to build a comfortable nest egg, which really makes the future (and old age) a more bearable thought. Enough said.

5. Investing teaches character.

Sure, constantly thinking about money can make someone greedy or insane. But there have also been a lot of people around the world who learned prudence and self control through managing their investments. Many people have also honed skills such as risk assessment, attention to details, efficient information gathering, and more. These skills they then apply in the rest of their lives, allowing them to make better judgments and decisions, improve their relationships and understand their core selves better. I too want to be a person of good character.

Suffice it to say, I think investing is a great thing to do. To be honest though, right now I’m still straddling the fence between Investing Step 01 (getting rid of debt) and Investing Step 02 (investing in low-risk instruments). I’m still trying to pay off my credit card debt and at the same time maintain my mutual funds. But through this corner of my blog, I hope to be more in control of which direction I take my investment portfolio and I hope to connect with likeminded people out there through the words I write here.

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