Investing: The Next Big Thing For me.

2 15
Avatar for Unimaid998
2 years ago

Happy New Month to us all, after to me a very long January, funny thing is that this January was actually very short for me.

On my last post I talked a little on the matter of investment and why is important,so her is a more vivid explanation on why Investing is Good to all no matter how much you are receiving or working for every day or month.

So is the month of lovers February and to some of us the saddest month of the year and all because we are very single and not ready to mingle. But if an opportunity presents it self then, who can stop nature from making the decision for us ๐Ÿ˜œ๐Ÿ˜œ๐Ÿ˜œ

So we all want out money to grow but are scared of doing things to make them grow I made time to research and to bring this point to us all here and to see how important investment is.Having a Saving Account is not enough.

Having a Savings account isn't enough.

Saving your money in some banks or something wouldn't get get you anywhere. Saving money is important, but itโ€™s only part of the story. Smart savers start by building sufficient emergency savingsOpens Dialog within a savings account or through investment in a money market account.

So why Invest.

Investing is an effective way to put your money to work and potentially build wealth. Smart investing may allow your money to outpace inflation and increase in value.

The Power of Compounding.

Compounding occurs when an investment generates earnings or dividends which are then reinvested. These earnings or dividends then generate their own earnings. So, in other words, compounding is when your investments generate earnings from previous earnings.

The Risk-Return Tradeoff

The amount of risk you carry depends on your appetite โ€” or tolerance โ€” for risk. Only you can decide how much risk youโ€™re willing to take for the potential of higher returns. But if youโ€™re seeking to outpace inflation, taking on some risk may be necessary. An increase in risk may provide more potential for your money to grow.

To help increase the potential benefits of compounding, start investing as soon as possible and automatically reinvest your dividends and other distributions.

Thanks for reading.

( Drop your comments and let's see what you think about Invest.

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Avatar for Unimaid998
2 years ago

Comments

Nice, Investment is like planting your money and letting it grow

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2 years ago

Investing is far better to bank savings. Infact what we call bank saving is not bank saving but mere deposit of money, to be withdrawn anytime soon

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2 years ago