People would ask, why do we need to invest? Is that really necessary? Well, in order to build wealth, you would want to invest your money. Simply put, investing allows your hard-earned money to earn more money for you. If you pass on investing, you are missing out on opportunities to achieve financial peace. Still not convinced? 

 

Here are 5 reasons why you need to invest: 

 

1. You have financial goals

Every one of us has their own financial goals. You may not have written it on paper, or set it on stone yet, but it’s there. It may be your very own house, your dream car, education fund for your kids, your own business, and funds for a comfortable retirement. Working alone can’t get you there. Aside from you working hard, you also must have your money work hard for you.

2. You can’t work forever

Unless you’re a superhuman, you will age and your strength will fade making you unable to work. When you can no longer work, where would you get money to get you by? From your family? From the government? Or will you push your body to its limits and continue working? If you have invested when you were young and able, that investment may have grown and can now provide for you. You can’t work forever, but your money can, 24/7.

3. You want to beat inflation

Inflation is the rate at which the general price levels of goods and services increase, making the purchasing power of our money lower.  For example, if you buy something today at 100 pesos, you may need more than 100 pesos next year just to buy the same thing. If you save money in a bank, the usual interest rate is just below 1% which is lower the inflation rate (average at 3-4%), meaning your hard-earned money loses its value over time. This doesn’t mean that saving in a bank is a bad idea, it’s just for a different purpose. You save for security and for emergency use. You invest to make your money grow for future use.

4. You want to retire comfortably

After working so hard for all those years, don’t you think you deserve to retire comfortably? Don’t you want to enjoy the rest of your life? Eat what you want to eat. Buy what you want to buy. Do what you want to do. We all want these things, but if we fail to invest and plan for our retirement, these are just wishful thinking. You need to save and invest today, so that you can have a financially secured tomorrow.

5. You want to be a blessing to others

 

Why do you work so hard? Why do you want to be wealthy? Is it only of yourself? For most of us, we do it because we want to support our family. We do it because we want to help out a friend in need. We do it because we want to be a blessing to others. But, you cannot give what you do not already have. It is only when you allow your cup to be filled that you can fill the cup of others. When you invest, you don’t do it just for yourself and your personal goals, but also to be of significance to others. 

 

No matter your age, gender, or status in life – we all would want to reach financial peace. We all want to reach that point when we no longer worry about money, and we can do the things that we want and matter to us most. Investing may not take you there immediately, but it will take you there. The pace is dictated by you and your discipline. There are so many reasons why you need to invest, so why don’t you?