Importance of Investment

Investing is very important now a days to survive. Here the importance of investment is stressed upon to make you understand your needs and goals.

What is "Investment" ?

Before you move on to know the importance of investment, you should know what it actually means. Many people think that they are investing their money when they hold few shares of a company.

But when it comes to investing, as low as a staggering 10 percent of the people only really invest and those are the only to survive in the long run. Investment does not refer to mere buying and selling the shares of a company.

But it means more than that of selling and buying the shares of a company.So now you might be thinking that if one doesn't sell or buy, how can one invest? I am not telling that investors don't buy and sell but what I mean to say is the real investor buys and sells his shares with a precise and ample knowledge and vision.

Investing needs a little amount of research on various elements which effect the stock market.

Importance of Investment

"The more you sweat in peace time; the less you bleed in the war"
What a quotation! This is applicable for all aspects of your life. If you don't invest your money and think that there will be no need of money in your contended life, then one day suddenly you will be in a pathetic situation where you need money for education or medication of your family member.

Then only you will realize the value of money. But dear friend, it will be too late to do anything and you will be in a deep trouble then. And you will be suffering for not investing your money in your life sooner or later. So it is better to be late than never.

Following are few of the many advantages of an investment in your life.

Financial Independence

First and the foremost thing is an investment gives you financial freedom. If you invest your money from the beginning, you need not to worry about the future financial needs. As future is uncertain, and there may be a situation in your life where you require a large amount of money to get out of that situation with minimal loss.

So to effectively protect yourself from such type of situation, you must inculcate the habits of saving and investing. It may be because of your children's education,marriage or medication. Let it be anything which demands lot of money, you may surpass it if you have invested your money from the beginning itself. Hence, investment gives you more financial freedom to rely upon.

Increases Wealth

Besides making you financially independent, investment makes you rich also. As you invest more and more money for a long time,it will definitely make you more richer. In the present generation, it is of utmost importance to be rich as it gives more benefits in each and every aspect of your life.

So investment increase your returns and at the same time make you wealthy. As you become more wealthy, you will have more financial freedom and vice versa. So wealth is also an important factor of our lifestyle.

Fulfilling Personal Goals

If you have a desire for having a luxurious apartment and a luxurious car of your own, then it is obvious that these desires may be fulfilled by a planned investment and savings. As you invest more, you tend to become richer. And as you become richer, you may find no difficulty in achieving your personal goal. Achieving personal goals is the essence of your success in every aspect of your life.

Desires Of Family members

It is your social responsibility towards your family members to look after them. it also includes to take care of their personal desires also. And you are the first responsible person to fulfill their wishes time to time. So if you invest carefully and get good returns and become rich by that, you may easily fulfill all the desires of yourself as well as your family members also. So investment plays a vital role in satisfying your family member's wishes.

Increases Knowledge

As investment does not mean mere buying and selling only, and it needs a thorough research in the various aspects of stock market and the company, it will improve your knowledge. It develops your knowledge in various fields. Learning more knowledge makes you to err seldom and which in turn make you a successful investor.

Increases Vision

Vision is not about to see the things happening but it is to see through the future happenings. For investing, you need a good vision into the future and should be able to interpret the futuristic phenomenon of a company's prospective. So good vision fetches you more returns and will contribute to your success at all the fields.

Thus all the above are only few of the many, you should start investing from now onwards to make yourself more successful in this present world.

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Author: KiranBala26 May 2009 Member Level: Gold   Points : 1


Nice resource from this resource i can understand the meaning of investment and how useful it . yes it is true that investment give you financial freedom now i will start my investment wisefully and carefully.

Author: Ashis Dubey26 May 2009 Member Level: Gold   Points : 1

Dear Pooja,
thank you very much for appreciating my work.
Hope I will continue delivering such nice articles in future also.

Author: Nalini Sadasivan26 May 2009 Member Level: Silver   Points : 1

HI, You have explained only about the nice side of investments. There are lots of risk also in investments. One who is investing money should be prepared to face the risk also, especially those who invest money in share markets.

Author: soubhagya das19 Jun 2009 Member Level: Gold   Points : 2

As people have seen th example of recession that India is not affected so much during this recession period just because Indian people have setted mind to invest their money and save something from that amount for future requirment .
so i request all of my ISC friends start investing early a small amount also (it may starts from rs 100) and see the changes after 4-5 year

Author: Ashis Dubey11 Aug 2009 Member Level: Gold   Points : 1

Dear friends,
Soubhagya Das is very correct to say that amount of saving does not matter but what matter is your intention of saving.

Guest Author: aayna16 Jun 2014

I visit this site first time. its nice. You guys doing an excellent job. it is very helpfull

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