IMPORTANCE OF INVESTMENTS
More often than not, we have seen people hammer on the word "invesments". In many cases, some do not know why it is necessary to do so – to invest. I know the word investments does not only pertain to money, you know, you can invest in relationships too. But generally, it means to put something at stake to get more in return. For the sake of this context, I will be limiting the meaning with respect to money. So, we can say investment entails the action by which you put your money to get you more in return.
When you work either by selling some things or you offer your services, you get money in return, right? With some of the knowledge we may have gotten in the financial space, you should spend all your money as it comes. You should set a defined portion for investments. I know someone may say Oh, I have got a little amount here. But I tell you, you can save to invest.
WHY SHOULD YOU INVEST?
Some of the reasons you should invest include, but not limited to:
Passive basically means when you are not directly involved with something. From the scenario painted above, you get directly involved to get money when you work. That is what is called the Active Income. But investment gives you passive income. You just need to do and fine tune your research so as to know the ones that would not be bad investments on the long run. Hence, the merit of proper DYOR.
Being Financially Free
The concept of financial independence does not imply that you must have huge stacks of money to your portfolio. Even with the little you may have, if managed well and in due course, it will be more then enough. When investments are properly done and passive income are flowing through, there are lessons that are taught during this process. One of such is spending below your means and makes one to be free of debt. This is because debt can literarily hold one in chains.
In conclusion, it is not too late to start act towards investments if you have not started. Like I said earlier, you can save to invest later on. Here on Hive, you may not even need to save to invest, you can use that little resource you have. There are tokens that can be staked, communities or curation trails to delegate to and get returns!
Posted Using LeoFinance Beta