There are people who prefer to save because the reasons for saving funds are safer and can be withdrawn at any time. That reason makes sense. Moreover, savings that are as an emergency fund, so that it can be used whenever needed. On the other hand, investment is considered more suitable for rich people, in the sense that investment is ‘only’ suitable for those who have a large capital. Though not really. Now, with a little money, the community can invest on the right source.
For those of you who are still hesitant to start investing, at least three reasons for investing can encourage you to really get started:
The reason why investors must start now in this section is very clear. The understanding that investment brings benefits is generally already in the shadow of everyone. And that is no longer a secret. Investing provides an opportunity to add value to the money invested. Investing in the stock market, for example, can provide an annual profit of 30%. On the other hand, the saving will make the value of money eroded, both due to inflation and administrative costs cuts. For example, if you save money in the form of deposits, the profit you can get can reach 6.2%, while inflation of 6.7%, will certainly be a loss, right? Not to mention the deduction of the administrative costs specified. For that reason, realizing the importance of investing must grow in the community, so that the mentality of investing can be more dominant than saving.
Maximizing investment returns is actually not too difficult. Studying all the information needed, with research support for existing information, can be one way to maximize the investment. On the other hand, starting an investment early can increase your chances of making a profit. For example, at a young age, you have started investing, in 10 years after that your investment profits will double, with the compounding effect. In addition, even if you have to lose money, at least you still have time to mitigate the risk of your investment so that in the future you can reduce the existing risk. It is important to reinvest the profit interest you get so that the potential you will get can double overtime. That way, the investment will facilitate you in realizing the financial goals that you have set previously.