In this video, we will be discussing, the importance of investment? Who doesn\’t dream of going for an exciting vacation, or own a house, or buy a dream car or achieve any financial goal in life? Well, investing gives you the right to live your life by choice.

In this video, we will be discussing, the importance of investment? Who doesn\’t dream of going for an exciting vacation, or own a house, or buy a dream car or achieve any financial goal in life? Well, investing gives you the right to live your life by choice. With a single source of income, it is challenging to meet several expenses. Investing is the solution to ensure all your financial goals are rightly met at the right time. It leads to wealth creation, which gives you a cushion to do something additional than the routine life. Sir Warren Buffet rightly said that “Never depend on single income. Make investment to create a second source. Keeping this in mind, let’s discuss a few of the most important financial reasons to invest:

First is the Financial Independence: Financial independence is required the most at the time of retirement. Keeping your current age, retirement age, life expectancy, and monthly expenses after retirement in mind, you will be required to calculate retirement corpus. This retirement corpus will be created at the desired time, only when you invest in various option such in stock market or mutual funds or SIPs etc.

Next is Financial Security: Investing today will help you secure you and your family member’s future against several hardships. Suppose you are planning a family after three years and you will need Rs 3, 00,000 to meet the entire delivery and other additional expenses. A well-selected investment plan will help you re-adjust your savings to fit that your desired emergency fund at the right time.

Next reason is Child’s Education Fund: Investing is the best mode of wealth creation. Suppose you want to create your child’s education fund. So do you think that the cost of education that stays today will remain the same in future as well? Well, over the years the cost of just primary education has increased to somewhere between Rs 1 lakh – Rs 2 lakh p.a. So by the time your child goes out for higher studies, the numbers may go just double or more than that. Example: an engineering degree that’s costs around 12 lakhs may costs around Rs 25 lakhs in next 20 years (assuming your child is an year old).

Next reason is achieving the, Financial Goals: Different goals require different financial planning. Suppose you wish to buy a house in next 5 years that will require investment in suitable investment plan for a period of 5 years. So that when you wish to buy your dream house, you already have accumulated the desired sum. Likewise, if you plan a financially healthy retirement, you will have invests in diversified range of investment products to give you the most reliable expected rate of return in future. Similarly it is true for other financial goals as well. With globalization and dynamic environment, the value of money is ought to increase, and so our wants and needs.

Remember the thumb rules in the investment process, which are maintaining a budget and start saving early, Invest for the Long Term, investing in proper financial instruments, maximizing savings, and reduced debt. This will help you achieve your financial goals and provide financial security with stability.

Thank you for watching the video!