Why Investing is Good For You.
November 12, 2021
Have you ever asked yourself “why should I invest”? Well, the answer is simple. Investing ensures present and future financial security. It allows you to grow your wealth and at the same time generate inflation beating returns.
Look at these three benefits of investing.
Investing will help you build wealth.
One of the tricks to building wealth is using the money you save to earn more money. For example, you can invest a part of your income into the stock market or real estate. Find whatever suits you best. Doing this can build massive wealth overtime, because your investment, will earn interest and you will eventually have more money than what you invested. One way to do this is by investing in dividend-earning stocks and bonds, so your money pays you as it grows.
Investing helps you stay ahead of inflation.
What is inflation? This refers to a general progressive increase in prices of goods and services in an economy. In other words, when the general price level rises, each unit of currency buys fewer goods and services. One strategy that can help you stay ahead of inflation is to invest a larger portion of your money in assets that have the potential to earn inflation beating returns. Another strategy that you can attempt is to increase the amount that you are saving after each pay period, that is if it’s possible of course
Investing aids in saving on taxes.
You might be asking yourself, “what does investing have to do with taxes”? well investments normally include interest and dividends. The income you receive from interest and unqualified dividends are generally taxed at your ordinary income rate. This means that individuals occupying any tax bracket will see a difference in their tax rates depending upon whether they have qualified for ordinary dividends.
Written by: Xoa Grant
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