6 Reasons Why You NEED to Invest Your Money

Investing into assets like:

• Stocks

• Real Estate

• ETFs

Have helped investors build wealth for generations.

But, even today there are still myths and misconceptions, which prevent a lot of people from making the jump to buy assets.

Things like:

• “Investing is too risky.”

• “Investing is only for rich people.”

• “I don’t have enough time (this one’s the worst)”

So, I’ve compiled a list of 6 key reasons why you need to start investing ASAP.

To Grow Your Wealth

Investing your disposable income is a fundamental aspect of building wealth and achieving financial freedom.

If you’re in a position where you’re determined to make improvements to your life financially, investing is key.

You can open up several new income streams by investing:

• Capital gains income

• Dividend income

• Rental income

These income streams have the potential to put you years ahead of those who don’t invest, and those who choose to build wealth with a cash position instead.

This, along with the 5 other reasons explained below, is why you need to start investing as soon as you can.

You’re leaving money on the table if you don’t.

Inflation

Inflation refers to the constant increase in prices of consumer goods:

• Groceries

• Utilities

• Furniture

• Cars

You name it.

Inflation is a constant, and every year, the target for governments is to have an inflation rate of 2%, to promote economic growth.

But, due to the COVID pandemic, inflation has been much higher than this over the past few years, and the past 3 years or so have accumulated an inflation rate of around 25% for a lot of western nations.

The result?

You can’t buy as much as you could’ve done the year before.

In fact, cash in a lot of countries have lost over 20% in purchasing power over the past 3 years.

With inflation being a constant, this means that the value of fiat currency is constantly going down.

Inflation is the only reason you should need to get your wealth out of cash, and into assets.

Compound Interest

Albert Einstein famously said…

“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.”

Compound interest refers to earning interest on your initial investment, plus any interest already earned.

It’s a phenomenon which takes places after a while, but has the potential to grow your wealth exponentially.

Imagine you invest $1,000, and the following events take place.

• Year 1 — you earn 10%. Now you have $1,100.

• Year 2 — you earn 10%. Now you have $1,210.

Why the increase in $10? This is from earning interest on the interest you had already earned from year 1.

It doesn’t sound like a lot, but it’s this compounding effect which can grow your wealth exponentially after several years.

Don’t pass up on this opportunity to build generational wealth.

Falling Interest Rates

There are certain times in history where the return on cash is greater than the return on investments.

Why? Interest rates.

We’ve seen this recently, where interest rates have increased significantly, to slow the economy.

And as a result of this, investment returns dwindled.

But after a few years, inflation has slowed, and central banks will soon begin to pivot, decreasing interest rates to avoid a recession.

The result?

1. You’ll get lower returns on your cash.

2. You’ll get higher returns on your investments.

When you have a long term mindset, investing in the stock market will always be more superior to investing in cash.

Follow The Rich

I want you to imagine a billionaire, or at least someone with a stupid amount of wealth.

Do they hold a lot of cash? Do they keep all their wealth in a bank?

No. They own things.

• Businesses.

• Stock.

• Real Estate.

Assets are the path to wealth.

Award winning author Robert G. Allen once said…

“How many millionaires have become wealthy by investing in savings accounts? I rest my case.”

You know what?

He’s right.

Peace Of Mind

This one comes straight from personal experience.

I started investing for the financial benefits.

I kept investing for the peace of mind.

There’s something about:

• Investing.

• Building wealth.

• Putting money aside for your future.

That elevates your mental health and level of inner peace like nothing else.

Why? Because wealth gives you options.

And before I knew it, I was able to quit a job I didn’t like and start building this brand.

If you stress about your finances, or your future, start by putting some money away to invest, and you’ll start to see progress.

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