During olden days, around half a century back:
We have seen our parents working whole life. People use to stick to one job for very long time maybe it is government job or private job where job security was guaranteed. In those times, whether they were aware of investment or not it hardly matter since they had a regular income coming along to take care of their children and educate them, purchase a house, medical necessities. When they get retired, they get handsome of benefits as a cash to look after their expenses after retirement.
“Investment Important for Economic Growth due to 3 Main Core Factors”:
- To beat growing inflation rate.
- To achieve financial goals quickly.
- Building capital for next generation.
Importance of Investment:
Now a day’s, investing is necessity of life. Things are not same as it was previous days, now a day’s most people work for a private corporation where there is no guarantee of job security. In current times and in current private job, you have to take care of your family, old parents, children, children education, medical expenses and many more. In this internet world you need to work extremely hard to fulfil future needs. Costs of medical treatments have risen so high that it is beyond the budget of middle class salaried person income. This modern world which you pass-on to next generation would be even faster and competitive then it is today. Looking at the world which next generation is going to inherit, you should less expect children to take care of you in your old age. Investment important for economic growth due to all this causes and effects. It is always recommended to start early investing.
So in conclusion, It is very much clear that when you work for the money at the same time your money also should work for you to fulfil the future necessity of this era. You will need to create a good wealth by investing so that in near future during jobless period or retirement age your money will work to generate regular income for you.
Investment definition never says that you must require enormous amount for investing. You can start systematic investing with your budgeted saving. It is pretty sure that this era is not for people who are merely hard working but this win-win generation is about people made up of recipe with smart work and smart investing. Thus investing is necessity to secure your present and future needs.
Build a Road Map for Investing:
Financial planning is a very broad concept whereas investing money is merely a piece of a pie chart diagram. When you decide to invest wealth your half of the road map is completed with your regular savings. Next step is to set your short term and long term financial milestones and draw a road map of your target. Proper financial planning with clear milestones can be set only with proper knowledge of investment options which suits you best, risks, risk to reward returns, etc.
Going forward we will keep on explaining different various pieces of financial planning pie chart diagram. For now you can read our next tutorial session to get knowledge of various investment options and different ways to invest and make money.
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Basics of Investing for Beginners
- Chapter 1: What is Investment and its objectives?
- Currently Reading: Why is Investment important for Economic growth?
- Chapter 3: Ways to Invest your Money and Make Profit
- Chapter 4: Best Investment Opportunities for your Retirement Income
- Chapter 5: What are the Legal Matters you should know before Investing?
- Chapter 6: Different Types of Investment Risks Involved in Investing
- Chapter 7: When and How to Invest in Stocks?
- Chapter 8: How Positive Attitude can improve your Investing mindset?
- Chapter 9: Should you Borrow Money to Invest in Stock Markets or Funds
- Chapter 10: 5 Rules of Thumb - To be consider before making Investments
- Chapter 11: How to Calculate Stock Market Returns and Break Even Point?
- Chapter 12: How to Calculate Compound Interest and Simple Interest?
- Chapter 13: Rule of 72, 114 and 144 of Compounding Interest formula
- Chapter 14: What is the Difference between Trading, Investment and Speculation?
- Chapter 15: How to become a Smart Investor or a Successful Investor
- Chapter 16: Tutorial Quiz – Basics of Investing for Beginners Module
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