Investing is important in gaining long-term wealth and economic value. Many associate the idea of investing with being rich or wealthy but your economic status doesn’t matter when it comes to investing. Anyone can do it and it’s better to start sooner than later. Below are 3 reasons you should be investing.
The Concept of Compound Interest
Compound interest is interest earned on an initial principal and on accumulated interest on previous deposits. As you invest, you increase your return on the investment. It’s important to understand this concept when making investments into 401(k) or similar accounts. It’s best to invest early with compound interest as it allows you to take advantage of the gains from compound interest.
A liquid asset is an asset cash on hand or an asset that can be converted into cash quickly. Investing can provide access to liquid assets. Investing over time can provide you with cash needed for unexpected things you may need. A quick way to do this is by investing in stocks. Stocks can be easily converted into cash when needed.
Investing helps create a better future for yourself and your family. It is the key to long-term wealth and economic value. There’s many investments you can make to plan for the future. Investing teaches great stewardship and money management skills. The bible says, “A good man leaves an inheritance to his children’s children, and the wealth of the sinner is laid up for the righteous.” – Proverbs 13:22. Planning for the future helps protect yourself and your family financially.
To learn how you can begin investing in stocks, checkout out my previous article 4 Ways You Can Begin Investing In The Stock Market Today