Putting your money on a low interest savings account is not such a good idea especially if you have big financial goals such as buying a house, sending your kids to college or saving for retirement. The only way to get more money is to make your money work for you by investing it. Investments will generate more money for you in the future through interests and price appreciation. In other words, you invest to create wealth.
By investing your money, you are making your money generate more cash for you in the future.
There are numerous ways on how to invest your money. You can invest on bonds, funds or stocks, business, antiques, jewelries,luxury watches, artworks, real estate and other investment vehicles. It all depends on your goals, preferences, time, capital and risk tolerance.
Although there are many investment instruments to choose from, the stock market is a good place for long-term growth to invest your hard earned money . Here are the reasons why you should consider investing in stocks:
1. Best Potential for Growth
Stock market investing is risky. The stocks go down a lot. However, there is a pattern that it has always stood the test of time. After each major crisis, the value goes up a lot. In other words, if you think long term, the cumulative gains always outpace the cumulative declines.
Although the most volatile, history has proven that stock market investing gave a high return in the long run. Thus, the rewards definitely outweigh the risks.
2. There is More Than One Way to Invest
3. You don’t Need a Big Capital
4. Trade Anytime and Anywhere
5. Earn Passive Income
Earning from stocks through dividends and price appreciation is the best example of passive income. Imagine yourself earning income even while on vacation with your loved ones. That’s passive income and stock investing can do that for you.
6. Advantage of Compound Interest
If for example you bought Apple shares worth US$10,000 in 1980, at 2017 that initial investment is now worth over US$ 2.7 million through compound interest.