Investing your hard earned money is essential. But to invest you have to learn to save. Oftentimes, people don’t realize that they keep spending aimlessly on trivial things that lead to a zero bank balance at the end of the month. Starting with every month, people are gasping for breath and waiting for their paycheck. The new paycheck will give them power to spend more. Yes, in reality people never think about saving, they put investment aside. Most people save, but ultimately all that savings is spent on bigger, useless things. Ask yourself how often you have spent your savings on buying a refrigerator, a television, furniture, bedding, dishes, etc. The response you will get is amazing; people often save to buy only liabilities. The cycle of saving and spending continues without end. Worse yet are the few people who invest to multiply their money faster, but ultimately spend it all to accumulate liabilities. Why does this happen? The cause of this stupid approach towards money is ignorance towards investing.
What is the main objective of investing?
The investment is made with the aim of achieving financial independence. Which means that a person has accumulated enough wealth by investing that mere interest on this principal amount will be enough to manage the basic daily expenses of life year after year. It is like a great mango tree, which gives protection and fruit to the owner. The fruit can not only be consumed, but can also be sold to purchase other necessities. But remember that the tree (main amount) remains intact. By gradually investing, people are sowing seeds of a mango tree. People often start investing as low as $100 and end up racking up millions for years to come. But there are only two conditions; First, save and invest gradually, and second, never touch (spend) your investment. Remember, your ultimate investment goal is financial independence. If one continues to consume his investment portions, then the investment will be impossible to achieve.
What is the correct way to invest?
One may have numerous investment options available for consideration ranging from savings accounts, recurring deposits, fixed deposits, mutual funds, stocks, real estate and many more. But my personal favorite is stocks. In stocks there are traders and investors. Warren Buffett is an investor who buys stocks and businesses with the goal of holding them forever (in line with our investment objective mentioned above). For a long-term investor, stocks are the best options available today. The concept of investing in stocks is very simple. Select and grow the company and buy its shares. You will earn money as the company grows.
conclusion
Put into circulation a plan to save your hard-earned money instead of just spending it on trivial things. Invest your savings in shares of growing companies and never touch that money. Your investment money will ultimately lead to your financial independence.
