explain 3 reasons to invest?

Answer 1

Following are three reasons to invest:

1) Money as cash always depreciate, because of inflation and other factors - now inflation in UK is 3%, so you are loosing £3 every £100 you have cash. Investing it would save your money being depreciated. Even if you get 5% return, you are not running risk of devaluation of your cash. For e.g. £100 - 50 years back would be a lot of money and now its just £100 everybody has it.

2) Right investment gives you pleasure to retire early in life, as good investment would give you a static, sustainable income year on year. And there would be a point in your life where you wont need to work.

3) Investing can be done to have: Diversification. for e.g. if you are exporting oil, and you invest your money earned from it in different business, gives you benefit of sustaining. So when world dries out of oil or if the oil prices fluctuates, or if you have to close business for any reason, you would have income from different industries that you might have invested in. So if from tomorrow every car runs on Electricity; you dont need to worry as you might have invested in a TV company or IT company or may be an electronics company.

Answer 2

Perhaps the best reason is that inflation eats away at your hard-earned dollars immediately... therefore, if you do nothing with your money at all, you lose buying power. A second reason to invest is to try to have your money work as hard as you do... putting your money to work, even if earning a CD rate, is better than just letting it sit. A third reason can be that if you aren't investing a portion of your money, then you are probably just blowing your money on items you really don't need... basically just wasting it. It's wise to invest... and it's wise to use a long-term approach when investing in well-diversified mutual funds with past records of above-average performance.

Answer 3

There is only one reason to invest - to get more economic power in the future than today.

So you invest $100 today to get $150 later.

Beyond that, we get into risk, and reward. But the only reason to invest is to get more money in the future than we get today.

Answer 4

Theres only 1 reason to invest.to gain more $$ tats all.Who on earth want to invest and lose $$.But it have to depends on ur view and reseach.Invest wisely and set on a long term investment.

Answer 5

1. Money
2. More money
3. Even more money

I'd like to say it's other things, like promoting the businesses you like. However, I work for a large corporation. Everything is done to make the shareholders happy by bringing them more money. It's not to make them proud of our product or business model.

Answer 6

for your future, for your wife and children and to avoid waste expenditure

Answer 7

for better returns
for security
good liquidity