Do you love your job? Most people don’t. Yet they continue to work for years and sometimes their entire life on the same. Have you wondered why? The reason is simple. It is because of money. We started with this discussion to show the importance of money in our lives. You cannot deny the importance of money.
Similarly, you cannot deny the importance of investing.
The future is uncertain, and if you are not financially prepared to handle different emergencies in the future, you are taking a huge risk in life. You have to get prepared for the uncertainties of life. The world we are in has made it mandatory to save and invest for the future.
Let us look at the top six reasons why you should be doing it:
You can handle emergency situations – Emergency comes without any warning and at any time. An emergency can come in any form – you can lose your job, or you or someone in your family gets unwell, and you have high medical bills to pay.
If you are unprepared for such situations, you could be in trouble. To handle different situations, you should be prepared. Also, invest in a variety of financial instruments. For example – for unexpected medical conditions, you should invest in a health insurance plan. Yes, buying health insurance is also an investment. With an insurance plan, a large part of medical expenses is taken care of by the insurance company. For loss of job situation, you should ensure you always have a minimum of 6 months of your monthly expenses handy with you. For that, you need to save.
Debt-free life and peace of mind – If you don’t have money in the bank or you have too much loan, you will never be able to sleep peacefully at night. Yes, sometimes you may have to take a loan, but you don’t want to keep that loan forever on your head. If you get in the habit of saving from an early age (as soon as you start earning), you will never have a situation where your bank account is empty. It gives you peace of mind and financial security during emergencies.
You cannot earn forever – The harsh reality of life is that you may not be able to do a job forever. It is good if you are able to do it. What if you don’t get work as you grow old or your health condition does not allow you to work? Hence, it is essential to save. Most of us are going to retire without any pension. Just saving money will not help, as inflation will eat most of your capital if you don’t invest it properly. You should invest such that you beat inflation and also generate good returns. You cannot invest in Fixed Deposits for your retirement. You have to get into equity. If you don’t understand or a scared, we have a solution. You can use Jarvis to start investing in equity.
Early retirement – The days when retirement used to happen at 60 years is gone. Now people want to retire in their 40s. If you also have such plans, you will have to save and invest in the correct financial instruments. If you are in your 20s or early 30s, you can fulfil your dream of early retirement. When you save for retirement, the maximum investment should be equity, given that retirement is far away.
Save for large expenditures – Do you dream of buying a luxurious car or a house? In India, most of us dream of having our own home. You can buy a car or a house by taking a loan. However, if you don’t want to do it in the next few years and it is your long-term goal, you can avoid loans. You can start saving for it and invest in a planned manner.
With a proper investment plan, you can avoid a loan in the future. Even if you have to take a loan, the loan amount will be small. Hence, your EMI will be small, small enough not to bother you at night. When you take a loan, you end paying a lot more than you take. If there is a possibility to avoid it, then avoid it.
For your child’s future – If you check inflation data across sectors, the cost of education increases at a very high rate. Your child will need a lot more than today to get a degree from a good college/university. To give the best education to your children, you should save and invest for their higher education. You don’t want them to take huge loans for education, do you?
Start saving now. More importantly, don’t wait for the right moment to start investing. You can start investing with whatever you save. Most people think only rich people invest. Even if you save Rs 1000 per month, you can start your investment journey.
If you can or are saving considerable money, but you don’t know where to invest so your money can grow, you should check Jarvis Invest. Also, if you have a large percent of your portfolio in fixed deposits or other debt instruments, you are not allowing your money to grow. It is time to make a switch.
Don’t stop yourself from investing in equity because of a lack of knowledge. Jarvis Invest helps you create your equity portfolio based on your risk profile and investment horizon. It also comes with a risk management system that lets you invest with reduced risk and maximizes your returns.