What is the purpose of investment? When does someone need to invest? One of the goals of investing is to meet the financial needs in the future whose funds are not yet available today. So investing does not mean someone has to have a lot of money at the moment.
Investment becomes a promising future land. However, to start investing needs to pay attention to your readiness and your habits in shopping. Regardless, it turns out that investing has not become a habit of many people. In fact, many people are horrified by this word. Investment is considered difficult because many use elusive terms. Some think the investment requires huge funds. Even if there is excess money, generally people prefer to go to the bank to save.
Apart from that, one of the strategies of investing is by installing or setting aside the funds held monthly for a certain period of time. In this way, the need for large amounts of funds in the future can be prepared long before the day with a lighter. The easiest investment you can do is to make a stock investment. Even now you can easily check its fluctuations through stock picks available on the internet. In addition, there are also many other types of investment products. Land and property, for example, is also an investment product. But land or buildings are not easy to sell when investment funds are needed immediately. In investment terms, products that are not easily traded are called illiquid.
Then what may be a question for you right now is what the difference of investment is by saving? Now by saving, people also set aside funds to get the accumulation of funds as needed in the future. What distinguishes with investment is the end result of the accumulation or collection of funds. By saving, the interest earned each year only ranges between 1-2 percent. When compared to the inflation rate or increase in the price of staple goods, the interest on savings is smaller. Currently, inflation is in the range of 7-8 percent. This means that the money saved will not be enough to match the price increase. Or in other words, the value of money collected, in the long run, will decrease because it cannot keep up with price increases.
Therefore, by investing in the long term, everyone can take advantage of various investment products in liquid capital markets. Through investment, everyone has the opportunity to raise money to meet future needs.