Warren, Why The Heck Do We NEED To Invest?
Beginner Investing Series #004
If this is the first article you have come across in the series you might like to catch up and read the others here.
In articles 1–3 we covered a few basics of investing but now it is time for a reality check.
Why you might CHOOSE to invest
The are many reasons why you might CHOOSE to invest.
- To build wealth for your children’s education
- To build wealth for future generations of your family
- To build wealth for your retirement
- To build wealth for financial independence
The reasons why you may decide to invest could be endless but…
Why we NEED to invest
In my opinion there is one reason why you NEED to invest — to protect your money!
Simply put we need to invest to protect our cash against INFLATION.
If we choose not to invest we are essentially choosing to lose money. This might sound harsh but it is reality.
Inflation is an ever present force in our world. It fluctuates with time but over the long term it is always there.
Inflation primarily causes the value of your cash to go down.
It is like the waves of the ocean crashing against cliffs. Slowly but surely the waves wear the cliffs down and eat further into the land.
Investing safeguards your money against the waves of inflation by growing your money.
If your money grows more than inflation then you are winning the war against the waves.
Coming Soon
- Article #5: Warren, What The Heck Is Inflation?
Disclaimer: This story is for informational purposes only. It is not intended as financial advice. Always undertake your own due diligence and seek advice from a financial professional.