The most necessary commodity to have in the present is money. The more you have money. The more are your chances of getting whatever you want.
Have you ever seen a billionaire waiting in line to deposit his billions in the bank? No, I am sure not. It is because they get special treatment, which is only reserved for the wealthy and affluent class. After all, they have more money than they can count.
So, how does one get to the point in life where he also gets treated in unique ways?
Earning money seems like an appropriate answer. Well, I am sure that the majority of the population is trying to make it through their jobs, businesses and using all their brain cells. Still, they fall short, more time than they would like to admit.
So, is there a trick to start earning more?
Is there some magic involved?
Should people start looking for Harry Potter’s magic wand and say abra-ka-dabra and the bag full of money would pop right in front of them?
I do not think so, and neither should you.
The only trick is to get your money to grow is through investments. So, the question to be asked is how to invest money? theirishcapital.com
However, before getting into investments, you must know why it is crucial. And here are four reasons why.
- Keeps You One Step Ahead of Inflation
Inflation is the rise in prices of commodities that happens every year all over the world. This is almost similar to a person’s appraisal at work.
Your salary tends to increase annually, for the lucky ones this appraisal happens bi-annually as well, likewise market prices for goods and services also increase.
Do you remember the gas prices from a few years ago? Were they the same as today? I know they weren’t, and so do you.
Beating this expensive augmentation should be prioritised, and your monthly salary cannot do it alone. Investing some proportion of your income will bring you more profit. This extra cash will be your aid and your ally when facing the recurring menace of inflation.
- Prepares You to Combat Financial Contingencies
Like I have said before, investment tends to mushroom your bank balance every month, and it does so with the interest or dividend income you get from your investments.
This way you would never be in shortage of money.
- You would not have to ask friends and family to lend you some cash, to get yourself treated after a sickening diagnosis.
- You would not have to look for loans even if you are in between jobs because the last one did not appreciative of your talents and skills.
- You would not have to worry about your income in a pandemic because most businesses and employees are asked to shut down and take an unpaid leave of absence correspondingly.
That is the ways investments and their regular income can help you overcome any emergency and crisis.
- Encourages Savings along with Splurges
Investing only needs a few things from you,
- One is the ability to analyse, predict and grab all favourable opportunities to earn the maximum rewards;
- And the second is money, without which the process would not start.
The investor often saves investment. Investments in shares, bonds, fixed deposits always come from a person’s savings, and not from a loan.
It means more investments would equate to more savings, resulting in more income, both from the saved money and its interest.
So, with that additional income, you can treat yourself; buy a house, a car, or just an iPhone. You would get the chance to splurge your income as you see fit. Because you might get an asset from the splurge, and encouragement in doing it is just about right.
I bought myself a Rolex, my wife a diamond necklace, and my son his first car when my government bond had matured. To say they were ecstatic would be an understatement.
- Makes You Competent Enough to Retire Early
The phrase ‘hand-to-mouth’ is often used to describe the income of salaried employees. It means that the income they get in hand is all used up to feed the mouth. All the necessities and utilities take up all their income with nothing left to save.
If this were to continue all their working, I do not think they would be able to retire anytime. Retirement mandates you to have enough funds in your account to live off of them for the rest of your lives.
With your investments and their income, not only will you be able to retire and live comfortably, but you can do it much sooner as well.
Why wait until 60 or 65, when you can start living the good life at 40?
Imagine you bought a piece of property as an investment and built an office complex on it, which you can now rent or even sell for a quarter of a million Euros. Would you then need your salary and more savings to wait to take the coveted retirement and travel the world?
In the end, all I want to say is that investing does come with some form of risk. However, it benefits trumps all of those. Perhaps that is why many of us have created investment funds in Ireland to make the best of our earnings and never be in a place to ask money from someone else.