The benefits of investment are Many are varied, and it is significant that we also understand how crucial they are to our financial lives. There are numerous talks about different investment options these days, even outside Leofinance. Though Leofinance authors have indeed mentioned various means of investment in the community, it is essential that we also enlighten people on the purpose of investment.
Thousands of individuals are solely concerned about earning and staking, but do they really understand why they're doing that?
Especially for the newbies, it is critical that we make them know that the purpose of investment is to help you achieve your financial goals, which also includes both short-term and long-term investment.
Users today choose different investment options. Many venture into cryptocurrency, while others put all their interest in estate management too. One of the major goals of all these individuals is to make sure that their financial lives are secured.
It's also significant that users get to understand that investment is not always a quick profit structure, regardless of how short it is, at least in a short-term investment, it is advisable that it last for at least six months or a year in total.
So what is the point of investing?
It's essential that we take a look at some fundamental reasons why we need to invest. Taking Leofinance as an example, plenty of users come and invest in the community token by purchasing it, only to stake it, make use of it via upvote, and wait for a return. With this, their major reasons or goals are to:
(1): Create Wealth : Investing helps you create wealth, which will definitely help you secure your financial situation, this also includes your long- or short-term goals. All this can be obtained by using your money in the right direction.
There are thousands of users who invest in cryptocurrency today. Those users understand how the market flows, and on most occasions, this set of individuals are always active during the bear market
(2): To meet your life goals
Meeting life goals is also essential. You may have some minor or many life goals, like trying to buy a new car, starting your own business, or even having plans to build your own house. To be honest, saving from your monthly income might be hard to achieve all those dreams, especially when it comes to how inflation has affected things recently and especially when you also have children to look after.
This is where investing comes in; it gives you the opportunity to secure all those dreams with ease. An investment for me is capable of increasing the sum from $5 to $50 in a month, depending on the project you're putting funds into.
(3) To Deal With the Growing Cost of Living
There is a level of take-home that can automatically subdue the cost of living in today's world, but how possible is it for someone earning a very low income to actually survive based on salary alone? In most cities today, many monthly earners don't have any take-home pay just because numerous expenses have been incurred before they get paid.
But investing your money wisely in instruments like equity might enable you to enjoy a higher return that may be significantly higher than the prevailing rate of inflation. Investing allows you to deal with the ever-growing daily cost of living and also give you ample opportunity to live the life you want.
(4) To Be Prepared For Emergencies
Depending on your monthly take-home or earned income, even if it's daily, you cannot meet with some unexpected circumstances. It's interesting that no one knows when an emergency might arise, but it is always good to be prepared. Just as Franz Kafka said, “Better to have and not need than to need and not have,” it is wise to have an investment function as a contingency fund so that it can always be used in case some unexpected financial situation happens.
(5) To save for retirement
There is no point in working all your life if there are no plans for the old days, so it is significant that you start something now that will automatically prepare you for life after.
Saving for retirement is advisable, but will it yield or grow while saving? Keeping money in a pension account is good, but with no interest, so it is essential that we also have a means of increasing our money daily.
The best means of securing a better financial life is to invest; there is no better way to do it. On Leo today, putting money on Leo tokens or even increasing your hive stake, or hbd, is a typical example of investment, and returns from all those things show how relevant it is to invest because it will keep on generating unending returns, which is what investment does.
A brief look at some investment options you might choose
(1) Real Estate: Investing in Real Estate For me, is profitable, especially when it comes to having a hedge against inflation.Putting your resources into real estate is good, and you won't have to worry about the ups and downs of the market, either.
(2) Agriculture: This is another major investment option in our society today, but it is unfortunate that most individuals want to avoid venturing into agriculture. Agriculture today has an enormous effect on the economies of some countries, and it accounts for approximately 30% of GDP, or around N2 trillion, in a country like Nigeria.
(3) Financial Assets: This includes stocks and bonds owned by the government or companies, it is crucial that you know that the price of this changes over time, and it is vital that you invest in this carefully.
(4) Cryptocurrency: Even though there has been a war against the crypto market recently, I still recommend it as one of the investment options you should take a look at. The market price might be very unstable when it comes to this, but it is significant that users who want to venture into this have a better understanding and knowledge of how it works. Buying and selling coins is always profitable, mostly when you buy at a low price and sell at a high price.
Putting the below at the back of your mind will be of good importance and will also give you more reasons why investment is the best route out of poverty or living a low-budget life.
Investments allow you to create wealth.
Investment gives you the opportunity to meet your long- and short-term goals.
Investment allows you to be prepared for unforeseen circumstances.
Investments like equity can help secure your money against the effects of inflation.
Investments give you the ability to live a comfortable life before and after retirement.
Investments are an ideal way to grow your money faster.
