We all want to grow our money. We live in an
unpredictable economy and the inflation rate is very high. If we accumulate
money and never invest it then the money will start shrinking. So if we want to
keep the value of money, we should invest in any option which gives interest
rate more than inflation. Investment is simply the process of exercising
money. We can make our money grow just as we do with our muscles with regular
exercise.
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Where to invest?
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Like some people misunderstand, investment is not just the process of putting
money in mutual funds and share market. Investment can be done in hundreds of
ways. Be it real estate, gold or whatever. The ultimate aim is to increase the
value of our money. If a person is investing then he should be able to justify
the need of that specific investment. If he can then he is on the right path.
Now you know why growing money is important. But random investing options are not going to be a perfect choice. We invest because we need money at specific times. Let it be after retirement, marriage, vacation, child’s education, purchasing home, car etc. If you don’t plan accordingly then you will be in big trouble when actually need money.
Now you know why growing money is important. But random investing options are not going to be a perfect choice. We invest because we need money at specific times. Let it be after retirement, marriage, vacation, child’s education, purchasing home, car etc. If you don’t plan accordingly then you will be in big trouble when actually need money.
