Reasons To Invest

Most people consider that an investment in the stock market is a method of obtaining goals to retire and nothing else. But this is very far from the truth. Many people invest in stocks looking more at the short term picture than the long term. The following examples should give you some inspiration in case you have not looked into the positive result of smart investing in stocks and mutual funds.

  1. Buying the home of your dreams. Being able to pay cash is not absolutely necessary, but imagine how amazing it would be to pay off a house immediately. Naturally, down payments are good to have, too. The more money you can put down, the lower your interest rate will be. That means you will pay less over the life of your home. This will create instant equity for you and make your home more valuable.

  2. Giving your kids a college education. While not as far down the road as retirement, it is a longer term investment. We all dream of sending our kids to college, but the idea of planning for retirement is a little harder to grasp. However, many of us are not sure how to give our kids the college education that we desire for them.

  3. Medical expenses such as braces. When you have children, you need to be aware there will be unexpected medical and dental expenses. Even though you have a good insurance company, you will probably have some bills to pay along with deductibles and the extra payments that may be incurred. It is certainly beneficial to have some money salted away earning interest to help you handle these situations.

  4. Taking the vacation of your dreams. There are always things we haven’t done, places we haven’t gone, sights we want to see, but haven’t yet. Too frequently, people concentrate all their efforts on their long term goals, and forget to enjoy life today. Our children are only little once. If you are going to take them to Disneyland, you should do it while they are young. Then they can have fun and and the fond memories that go with it. The wonderful memories they will have of the time spent with you are priceless and more than enough reason to invest your money in this way.

  5. Emergency funds. Things will happen in your home that will be unexpected and costly. If you just keep your money in the bank, the interest rate will be very low compared with other investments. So by investing the money, it will be working harder for you. When you need it for an emergency, it will be waiting for you, and it will have grown a bit more. That will really help you to handle those unexpected emergencies.

So, even if you are not investing for the common reason of securing retirement, there are a myriad of other reasons to invest. If you have never thought of the reasons listed here and along with others that aren’t, isn’t it time to start now? There is nothing to keep you from building your future by starting to invest now!

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