Why Investing Your Money Is A Smart Thing To Do

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You’re probably fed up to the back teeth of hearing about the economy and words like “credit crunch” or “crisis”, and to be perfectly honest, so are we. However, unfortunately, just because we’re fed up of hearing about these things, doesn’t mean that they’re just going to go away and get better by themselves. The simple fact is that inflation is rising, the cost of living is getting more and more expensive, more and more jobs are at risk, and unfortunately, wages simply aren’t going up. People say money doesn’t bring true happiness, and whilst that may very well be true, it can offer you peace of mind, both now, and for the future as well. In order to secure either your own future, or that of your loved ones, or even to simply make yourself more money in the long and short term, then have you perhaps considered investing your money? Investing your money, if done correctly with the right investments, can be one of the smartest things you could ever do in your entire life.

So what exactly is investing? – Basically, the word investing, simply refers to somebody using their own money, and purchasing any kind of financial product, in the hope that the product will actually grow and increase in value, as time goes by. If it indeed does, then the idea of an investment is to buy for a low price, wait for the product to increase in value, and then sell it on for a profit. Many investments are designed to be cashed in years, or even decades after they were originally purchased.

What are some of the more common and popular forms of investment? – Bonds, stocks and shares are some of the more common and popular forms of investment. Take stocks and shares for instance. Many companies allow people to purchase stocks and shares in their companies. As the company hopefully increases its sales and profits, to stocks and share prices of the company also rise. Say you purchase just one stock or share in a company, for £1 a share. If the company does well, the share price will increase, perhaps to £2 a share. You could then sell your 1 share for £2 thus doubling your money. If you’re still not convinced here are some more reasons why investing your money is a good idea.

You increase your money overtime –                Purchasing stocks and shares is a great way of increasing your money, allowing it to grow overtime. Many people set aside money that perhaps they can live without, and rather than buying a new car, or something will decrease in value as time goes by, they instead invest it in shares of a certain company. They then leave this money invested in the company, sometimes for decades, until they’re ready to cash it in. They can see how the share prices are doing on a daily basis, and they can cash in their shares whenever they’re ready. Sometimes other factors can affect the price of shares, such as if the company receives some bad publicity, generally, share prices will fall, whilst if they do well, prices will increase.

You have the potential to make life changing money – If you’re smart, then generally, with investments, the more money you put in, the more money you will make. One popular investment that has been garnering more and more interest amongst buyers is actually precious African minerals. African minerals share prices tend to fluctuate on a daily basis. Precious minerals which are mined in other countries, are obviously very rare. Say for example, they discover a new mine laced full of precious minerals and stones. The share prices then would absolutely sky rocket, potentially making people who had already invested in the company that discovered the mine, an absolute fortune.

You can save for your future – For some of us, the idea of finally retiring after a life time of hard work and hard graft can seem like an impossible and unachievable feat. A great way of setting yourself up for retirement, is by investing your hard earned money, when you’re still relatively young, and simply getting on with your life, and forgetting about the money for years and years. You can monitor your investment if you choose to purchase shares and stocks and if you’re confident that your investment is only going to go up and increase, then you can even purchase even more stocks and shares, and potentially give yourself the chance to earn enough money to retire comfortably and live the rest of your life happy, the way that it should be lived. How you invest your money is entirely up to you. There are low risk options, which almost certainly guarantee to make you a profit, however, the profit will probably only be pretty low. You could be riskier and buy shares in companies that may be just getting started, but that you’re confident will become highly successful over the coming years. Remember, the more successful a company is, the more expensive each stock and share will be, and what any investor will tell you to do, is to buy as low as you possibly can, and sell as high as you possibly can.

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