Make Money with Money : How to Grow your Money?
The concept may not digest easily for everyone. But it is true.
Why Should I Invest?
There are two reasons why you should invest:
- To stay ahead of inflation
- To achieve financial goals
Inflation causes the increase of prices. When the price of rice goes up from Rs 5.00 to Rs 20.00 or when petrol prices goes up from Rs. 25.00 to Rs. 50.00 a liter, we can say that is inflation. You need to make more money to keep up with the rising cost of living in India.
Your salary or your bank interest may not be growing as per the inflation. This brings you finally to a difficult situation, where your income and expense may not balance.
Do you have a Financial Goal?
Some of you may ask, what is a Financial Goal?
Financial goals can be separated into two types:
- Short-term goals – Certain things that you need or want now or within the year, such as a bike, a computer, or a new television. Generally, it takes less money to reach these short-term goals.
- Long-term goals – These are things that you need or want in a few years or more, for example, your child’s educational expenses, buying a house and even starting a business. Generally, these goals are expensive and require some planning.
When Should I start Investing?
The earlier you start investing, the sooner you can reach your financial goals. Investing money is like “planting” money. A small amount of money invested will often grow to a larger sum over time.
You’ve heard the phrase, “Time is money.” With investing, time also makes money.
What are the Risks in investing?
Even though investing can make money with money, the negative aspect of investing is that there is a risk of losing your money.
Remember, the key to investing is to minimize the risk and to maximize the financial rewards. For this reason, it is important to understand the many ways to invest money. Or you can approach a certified / qualified financial advisor.
Most of the banks in India provide professional financial planning advise for Free.
