Relax Tomorrow
Investing is the process of directing cash into different financial instruments to get your money to work for you. This could serve as an additional or major source of income, allowing you to achieve your strategic goals, financial freedom, and success.
It may seem like a daunting challenge? Do I even have money to invest? What if I lose all my money? These are all very valid concerns. We also have to acknowledge that there are advantages to investing. Can we generate at least 10% returns over a year? Maybe, with proper risk management and investing knowledge. It’s time to take hold of your money and let it work for you.
Why invest when you have your savings?
Well, I don’t know about other countries, but here in Singapore, a savings account would probably only give a 0.05% return per annum. And that is totally lame.
If you had placed that money into the SPY, you would probably get at least an 8% return per annum.
So is it worth investing? I’d say yes.
Let’s go through some reasons why you might want to start investing.
1. Time is on your side
To whoever is reading this story, it is never too late to start investing. I have heard many success stories of teens who invested early and in their 20’s can afford to pay downpayment on their HDB flats in Singapore. If you’re wondering how much an actual flat costs in Singapore, it’s about SGD$500,000. And that’s for a really small apartment.
Back to the story. The earlier you invest, the earlier you allow your money to earn compound interest. The power of compound interest. Some say it is the 8th wonder of the world!
If you invest later, you have to put in a higher monthly amount as compared to when you invest earlier. That is because the money has less time to earn compound interest.
If you want to learn more about this wonder, please click on this link.
2. Builds Financial Discipline
Investing is great because you actually learn more about your money. Where does it come from? How is it being used? What do I do with what’s left?
As you explore the realm of investing, you will learn how to manage your finances better. You learn to cut down on unnecessary costs. You learn how to earn more money. Most importantly, you learn the value of money.
As time progresses, your attitude towards money changes, and you become really financially focused. And this will change your life significantly.
Start today, relax tomorrow.
