Investments, a word that is commonly we hear everyday. A word that is always closely associated with money. A word that is often interpreted as the results obtained from a future or past financial decisions. But for the majority of our community investment is still limited to the beautiful words but still rare in the financial investment that makes a habit / behavior.
In general, the investment is actually more sophisticated form than the other habits of saving. Save more to save some money on a regular basis without the motivation to have a yield of savings. Only to the extent that in the future will be to collect a large amount of money for future needs.
While investment has more motivation than just saving money. Used as a vehicle for our investment or investor often referred to as a means to money / assets already invested / purchased later may experience growth. Just like a tree planted as a child, cared for and maintained for many years to finally have a solid roots, large tree trunks and powerful, dense and shady leaves to the roots of the towering.
Similarly, investment, starting from the initial asset purchase may take the form of gold, mutual funds, bonds, stocks, business, etc.. Routinely we will always monitor the “tree of investment” until we shall produce a sufficient return on investment needs and objectives we invest it.
Why do we need to invest?
Actual investment is very broad meaning. We often see these words are not in the financial and economic world. In the world of politics, religion and education were not infrequently we often find the words investment. For example a political party cadre who has worked for years to raise the party, in time will surely reach the top position in the party as a return of investment policies. Similarly, our schools from kindergarten to PhD, it was one form of investment science course, a lot of yield in the course of our careers.
One of the reasons why we have to invest is in order to prepare a wide range of financial needs of our future as early as possible. Since investment is highly related to time. Still remember what the price of motorcycles of the 1990s? Yes, well it’s been 3-5 millions of the top. Now in the 2000′s price has reached 10 million instead. For example we will buy a bike again in 2020′s approximately how much later?
With proper investment planning, then that’s where the benefits and purpose of the investment itself. Due to determine the objectives and expected prices, we are able to prepare a “bud / seed” investments that will be bred so that it can meet those needs. Well, to be available later in practice many instruments of investment options tailored to the level of yield as well as risks.
You can imagine if you did not make an investment. It can be ascertained all the needs of the future will be provided at the time came, in the sense should be able to provide cash on the spot. For example always look ahead when the new school admissions, pawnshops definitely crowded by parents who need money to put their children in school. In fact it is not uncommon to ask debts to the bank. From there we can know how big the benefits of investing is not it?
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