Welcome back to the blog!
Today we are talking about 5 reasons you should consider investing (if you aren’t yet).
I recently started investing last year after I bought a how to course. The course was super helpful but the community was everything! Trading with other like minded individuals is so helpful and fun. As a result of learning how to invest and trade stock options I was able to pay off over $10,000 worth of debt in 2020 during the pandemic.
What an eye opener that was!
My main reason for learning to invest was to grown my money and let IT work for me. So let’s go ahead and get into the reasons why I think someone should invest 😃.
5 reasons you should consider investing
- Grow your money
- Help save for retirement
- Leave a legacy/build wealth for family
- Support others
- Financial independence
Grow your money
You may not think we need to talk about the first bulletin point but let’s talk about it:
Regular savings accounts are not going to grow your money as much as other alternatives can. It’s a little hard to find interest rates over 1% at most financial institutions.
Investing your money helps grow your money faster than traditional banks can and that’s why it’s number one on my list. My goal is to grow my money quickly….not waiting on $0.10 interest to post to my account from the bank every month.
Help save for retirement
Sorry but waiting until 65 to live my life just doesn’t like a good idea or fun to me. I mean don’t you agree? Wouldn’t it be better to spend more time actually living your life? Yes or yes?!
Investing can help you save for retirement so that you actually have money to live off or do whatever you want to do once you retire, even if you do decide to wait until your 65. Maybe you have a job that you absolutely love ❤️ which is great!
There are various tax advantageous accounts for retirement like 401ks, 503b, IRAs (individual retirement accounts), etc. They all have their pros and cons and are definitely worth looking into if you work a job that offers it. Some companies even match your contributions!
Don’t leave free money on the table!
Leave a legacy/build wealth
Don’t you want to make sure your children are taken care of if anything were to happen? I want my child to be set up and in a great place financially so that means I have to start now!
Learning how to invest can also help you invest for your children. I recently looked into custodial accounts and according The Balance’s Best Custodial Accounts , a custodial account is “a financial account held in the name of a minor, usually by a parent, legal guardian, or another relative. If you are a parent or guardian of a young person, this gives you the opportunity to save and invest for your child while retaining full control of the account until they reach adulthood.”
I love that custodial accounts allow you to invest and have control but it’s for your child. Be sure to do your own research and choose the best account that works for you!
Bankrate also has a helpful article on ways to help your kids learn about investing! Check out the article here for more information.
Doesn’t feel good when you can support others? Maybe your friend has a Shopify or Etsy shop. What if you want to invest in their business or an idea of someone you know?
Yep, investing is another way to help support the people or causes you believe in. You can use the money or capital gains from investing which is great. I’ve seen a lot of people make great money investing! Don’t forget to consult with your tax advisor regarding your investments.
I don’t know if you know, but it’s my goal to be financially independent in 10 years or less. I’m currently on year 4. You can read more about my journey here and here.
So far I’ve paid off over $10,000 in 2020 with investing! To date of writing this post I’ve paid off over $23,000 of debt! I’ve got some work to do for my student loans so I saved those for last! To think I’m reaching the end of the tunnel is rewarding 😃.
I’m proud to say that I’ve had success trading in the stock market and the forex market! I’m excited to continue to learn more and earn more!
Have you started your investing journey? How did you start? I’m interested in knowing!