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For the Future: 5 Reasons Why Investing is Important

Investing, in a sense, is being prepared should such hardships come.  Here are some more important reasons why you should consider investing:

Investing Helps you save for retirement

Sure, you have a job that’s paying you a lot of money. Right now, you’re already living a comfortable life. The question, though, is how long can your work and earn from your job? Retirement is an inevitable phase for those employed. As the body grows weak, you can no longer do your job the way you used to from twenty years ago. Even those who invest for dummies know what a good investment can bring in the future.

When retirement comes, and you don’t have anything to get you by, then you’ll be in trouble. Investing your money beforehand enables you to create funds that can help you live your life happily, until the rest of your days.

Alternate source of Income

Investing in a business or other venture can help you earn extra money for your funds. Instead of having to rely on a single job, investing in something profitable can help you in the long run. Even if you have installment loans, mortgages, credit card bills, utility bills, etc. to pay, having an alternate source of Income won’t jeopardize your finances as you’ll have more options to pay those off.

Compound Interest

People who are good at handling money will tell you how important investing is because of Compound Interest. Say you have $1,000 in your bank account this year. If you invest your money, you can earn 10% of that $1000. After a year or so, you’ll have $1,100 in your account. $100 a year isn’t much, but it all adds up. Even if you don’t have something to contribute next year, that $1,100 would still earn another 10%.

Investing your money into compound interests, enables you to have bigger payouts, granted you’re not withdrawing your money the moment it begins to earn.

Emergency Purposes

No one is immune to unexpected occurrences in their lives. At some point, an accident or emergency will happen. Most of the time, people who don’t have insurance investments tend to suffer a lot. Instead of having an emergency fund to get money from, they’re left paying off these expenses through their own pockets.

Having Insurance is an excellent way to invest your money as you’ll feel more secure knowing you have funds that are specifically for this purpose.


Another inevitable thing that’ll come in our lives is death. No one can escape it. With death, you won’t be able to carry over all your riches to where you believe you’re going. With a good investment, you can be sure that the family you leave behind is taken care of. You can certainly leave your investments as an inheritance.

Before you meet your maker, you’ll be happy to know that your loved ones will continue living comfortably. In a way, you’re leaving behind a legacy for your sons and daughters to follow.


You might be living a satisfying life today. You might not have any debts to pay off. However, all things can come to an end. Without having to endure the outcome of that harsh reality, you should always invest. Don’t depend on a single outlet for Income. Invest your money wisely, and you and your family will continue to live happy comfortable lives.