Welcome learners, today we are going to know ourselves by asking a simple question. Why invest in the Share market? Firstly, I want you to clear your vision. Everyone wants to be rich, become financially strong. But only a few can achieve their goal and financial freedom. Everyone is earning money throughout their whole life and saves money despite that they don’t have enough money to spend on, luxury, travel, car, vacation. Even they don’t have their own home and good food to eat.
Do you want the same life? Working throughout your whole life and just meet your needs. If you want to live an awesome life, you must have to invest in the stock market. Here are some reasons that made your mind to invest in stocks
1. Inflation is increasing every year
What is Inflation? Let understand it first, Inflation refers to the rise in the prices of most goods and services such as food, clothing, housing, transportation, consumer staples, etc. every year. As simple as the value of money is now is not the same in the future. If you pay 1000 rupees for food at a restaurant in the year 2020. Then in 2030 for the same food at the same restaurant you have to pay 1791 rupees at 6 % annual inflation.
2. Invest your money to make more money
Let’s say you have a good amount of money you saved from your job. When you hold the cash, you will lose its value, so invest your money and put money on work to grow your wealth. Investing money can allow you to grow it, returns allow your money to build, creating wealth.
3. The power of compounding
This is a very interesting term, compounding refers to interest on your interest means each time you earn interest on principle, it is added to your principle for the next cycle. Let understand with an example suppose, you invested 1000 rupees in some fund which offers 10% interest per annum. Your investment becomes 1100 rupees after the first year. Now the interest is calculated on your principle that is 1100 rupees. In the long run the power of compounding makes you a billionaire.
4.Invest in good dividend stocks that give you steady income
Let’ pretend you are lost your job and now you don’t have money. So how you survive? For this type of financial crisis dividend stock could carry you through a rough patch. Investing in stocks diversify your money. Dividend stocks are companies that pay out regular dividends (means a profit on the share you take of those companies) annually. If you have a 10000 share of ABC company at 150 and its dividend yield is 10 %. Then you get 150000 rupees annually. Isn’t that great please tell in the comment section.
5.Achieve your financial Goal
Everyone has some wishes in life, it can be a new car, a new home, a vacation, a good education. Everyone wanted to be financially free. But this whole cannot be accomplished by your money from a job, you have to diversify your money, make other sources of income, and invest in the stock market. Long term investment can make you billionaire at your retirement.
Now it depends on you whether you invest in the stock market and be rich and live your dream or die while working in poverty.