Most people who earns a regular income don’t invest. Why?
There are a few reasons as to why they don’t. Most people possess little knowledge about investing. After all, investing is not a subject that is taught in school.
Others will say that they don’t have money to invest. It’s not difficult to see why. Average people will always spend first and save and invest whatever is left. Most of the time, there will be none left at the end of the month.
On the other hand, rich people always put aside a portion of their money for investment first, then spend the rest. If you haven’t realized, it is all about prioritizing. Let’s look at some reason why must we invest.
Value of Money
The value of your money in your saving account is decreasing as we speak.
The inflation rate fluctuates around two to three percent every year. If you are not investing your money, you are actually losing money.
Also, unlike precious metal and land, money can be printed. This means that the supply of money can be increased. And when the supply goes up, the value of your money goes down.
In case you’re wondering if money printing is a common practice, the government does this almost everytime there’s a big recession.
If you don’t invest, you don’t have “little workers” working to help bring you back more money.
Robert Kiyosaki always emphasize, “Rich people acquire assets. Poor people acquire liabilities.” Assets put money into your pocket and liabilities take money out of your pocket.
Poor people work for money. Rich people let their money work for them. Are you working for money or is your money working for you?
Most important, investing helps us to perceive money in a different light.
Poor people see money as a tool that is only meant for saving and spending. On the other hand, rich people see money as valuable resources that can be used to increase their wealth.
Investing teaches us lessons such as delayed gratification, patience, decision making, and managing risks. All which are prerequisites of wealth accumulation.
Not investing and not realizing the importance is truly the best way to get stuck in the poor and middle class.