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Why is investing important?

Why do you put in hard work to earn money?

A very simple question with a very simple answer – to fulfill your and your family’s financial needs. However, just earning money does not ensure that your financial goals would be met. For that, you need a corpus and this corpus can be accumulated if you invest.

What is investing?

Remember when you were young, you saved money in your piggy bank so that you can accumulate a sizable amount?

Investing is just that. It means saving your income and then allocating it towards different avenues so that you can accumulate a bigger amount over time.

Why is investing important?

Do you need one reason why investing is important? I can give you five!

1.To accumulate a corpus

What did your piggy bank give when you broke it open? A big corpus, right? Investing also gives you just that. When you set aside money regularly, you can build up a corpus. And when you have a corpus, you can fund your financial responsibilities.

2. To earn returns

The beauty of investments is that they offer returns on your money. You cannot expect your money to grow by keeping it in your locker. When you invest, you earn returns and these returns help your money grow. Imagine saving Rs.100 and getting Rs.110 in return. Isn’t that fun?

3. Tax planning

Who likes taxes? Taxes eat into your hard-earned income. However, paying taxes is your federal duty, one that you cannot avoid. But what if investing can help you save on tax? Yes, you heard right. There are different types of investment avenues that give tax benefits on the returns that you earn.

4. Fulfillment of financial goals

You might plan to buy a house in some years or plan an expensive education for your child. Where do you get money for the same? Through investing of course, where else! When you invest and create a corpus, you can use it to meet your financial goals.

5. Financial freedom

Imagine having so much money that you become financially free? You don’t have to imagine such a Utopian image if you invest right. As you invest and build a corpus, you can meet your financial obligations. When all your obligations are met, what do you get? Financial freedom, of course! Financial freedom is not an imaginary concept now, is it?

Remember the old saying – A penny saved is a penny earned? How about going a step further to say that a penny invested the right way is two earned? Wouldn’t that be apt?

So the bottom line is, start investing the right way to set yourself up for a comfortable financial life.

Sign up for MProfit today and manage your investments the right way from the very beginning of your investing journey!

1 February, 2021

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