Why should you invest your hard-earned money? Investing allows you to put your money into financial products like stocks to obtain a higher return as compared to just leaving your money in banks.
Of course, there are risks involved when it comes to investing. There is a chance to lose your money in your investment. However, if used wisely, investing is a great tool to utilize in order to achieve financial freedom.
Here are the top 3 reasons to invest your money.
1. Earn a higher return
Do you know that bank's interest rate in Singapore is around 0.05% pa? Compare this to Singapore's core inflation rate which stands at 1.0% for 2019, it means that we are 'losing' money if we were to keep our money in our savings account. This is because every dollar today would be worth lesser tomorrow. As such it is important that we put our money to work and earn a higher return from it. Investing is one of the ways where you can achieve a return ranging from 5% to 12% depending on your risk appetite.
2. Buying big-ticket items
Want to get that car that you saw in the showroom but you decided not to get it due to financial constraints? That is a common occurrence and would also not be the only big-ticket item you would want to get in your life but unable to. What about your wedding, housing, and even your child's education? Investing allows you to double or triple your money which could then be used to buy such big-ticket items.
3. Retire Early
Have you dreamed of retiring early and traveling around the world without any financial worries? Well, I do. This may seem impossible, however by making your money work for you, this dream isn't as hard as it seems. By investing in the stock market we can grow our wealth from capital gains and dividends. Our investment would then provide us a regular income when we retire
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