Wondering why investments are always said to be important? Today, we are going to tell all our fellow investors why investment is so important and how they can help you achieve all your dreams and goals in life.

Wondering why investments are always said to be important? Today, we are going to tell all our fellow investors why investment is so important and how they can help you achieve all your dreams and goals in life. So let’s jump right in.

All of us are always dreaming of owning a grand house, buying our dream car and going for a big vacation. investment gives you a chance to fulfil these dreams and live your live by your choices. It is very difficult to meet all these goals with a single source of investment. So, with the correct investments, all these can be achieved at the right age as well. As rightly said by Mr. Warren Buffet -“Never depend on a single source of income. Make investments to create a second source.=”

Keeping these wise words in mind, let us discuss the most prime financial reasons to invest.

1. Financial Independence – Financial independence is required mostly at the time of retirement. After keeping in mind your current age, retirement age, life expectancy and monthly expenses in mind, you will have to calculate a retirement corpus. This retirement corpus can be only built by an expected age with intelligent investments in stock market, mutual funds or SIPs.

2. Financial security – Today’s investment will ensure that an individual and his/her family members are secured against a lot of hardships. So if you are planning any goal in let’s say a span of 3 years, then intelligent investments will help you adjust your earnings in such a way that you will be able to create an emergency fund in that period of time for that activity.

3. Child’s Education Fund – An investor will always have to put his best foot forward if he wants to plan his child\’s education properly. This is because prices of child’s education are always rising rapidly, and will not be the same as they are today. The cost of just primary education has now escalated to INR 1L to 2L per annum. So any investor planning for a child now, his education cost in the next few years may double, or even more than that.

4. Achieving Financial Goals – So financial planning can be done for a varied number of dreams or goals that you want to achieve. And the investment is such, that an investor should be able to already manage the accumulated funds to complete his objective over the time period he wishes to complete it in. So, according to the need and risk appetite of the investor, and the time frame he wants to accumulate the money in, investments need to be done accordingly.

Always remember the thumb rules in investment process, which are – maintaining a budget, starting investments early, investing for long term, investing in proper investment instruments, maximizing savings, and reduced debt.