How Becoming an Investor Can Make You A Millionaire
Do you know that not investing is like leaving money on the table? Like a lot of money…everyday?
Most people still believe that the way out of poverty and to create wealth is to work hard and save up. They are right; at least to some extent. The whole truth is that no one gets rich by saving, if you don’t know how to make your savings work for you. The solution to lasting wealth is skillful and creative investing.
In this video, I am going to be talking about what you stand to lose if you fail to invest. While investment is not just about money; you can invest your time; you can invest in your relationships and you can also invest in your education. However, we are going to talking about investing money here.
Even if you were born with a ‘silver spoon’, you still need to learn the act and the science of making your money work for you. That way, you can save your strength and grow your empire. The earlier you learn how to make your capital your slave, the faster you will escape the dark clutches of poverty.
When it comes to money, failing to invest is not just throwing away money, but throwing away the entire mint! Of course, you have the potential to lose your money in investments, but if you invest wisely with the right counsel, the potential to gain money is higher than if you never invested.
Here are the top ten reasons not to shun investing:
- Your savings are worthless without investing them!
While I agree that saving money is not a bad thing, I’ve never met any rich person who became rich by just saving their money. Imagine all the self-denial that you need to go through to put those precious extra dollars in the bank, only to realize that you just wasted your time because depreciation, inflation and bank fees will make sure your sweat was in vain! Investing is the way you get to make your savings work for you and continue to produce returns while you sleep.
- You will never have enough for retirement
Everyone should be saving money for retirement. That is a normal and sensible thing to do. When you fail to invest what you are saving for retirement, what you’ve put away for the days when you can no longer work will not be enough. If all you want to fall back on is what you have saved over the years, you better prepare to be a charity case or go on social welfare. I must point out here that you may need to become more careful with your investment options as you grow older over the years; don’t throw everything away trying to earn too much too fast. Remember to Stay away from get rich quick opportunities. What you see is not always what you get.
- You will miss out on earning higher returns
I know you have a saving plan and that is commendable. However, returns from saving accounts and fixed deposits are really nothing much to write home about. The wiser option is to get your money out of the banks and invest in ventures that can help you grow your savings. Investment opportunities often if not always offer better returns on your capital. Stop allowing your money to sleep; put it to good use.
- You may never be able to reach your financial goals
We all have some form of financial goal. Somewhere we want to be financially at a particular point in our lives. Maybe you want to buy a car, buy a home or put your children through college; you will need a strong financial plan to get there. If you fail to invest, your capacity to set financial goals and to crush them will always be limited to what your income can afford. Remember, a non-investor is always limited by his employee paycheck
- You will miss out on pre-tax money
Some investment vehicles, like employer-sponsored 401(k)s, allow you to invest your pre-tax dollars. This option allows you to save more money than if you could only invest your post-tax dollars. Investing in things like 401K and other retirement investment classes is a great way to reduce your tax bill, while affording you the opportunity to claim considerably on your tax returns. Without investing, you are basically missing out on some very cool free money here. Most of us believe the taxing system is harsh but do not fully utilize the opportunities it also presents to support those who know how to use it to grow their wealth.
- You will not qualify for employer-matching programs
Some employers offer to match the money you invest in your 401(k) plan up to a certain amount. Of course, the only way you can qualify and earn these matching funds is if you take advantage of these opportunities and are actively investing in those types of plans. Thus, many people invest in their 401(k)s to gain the matching employer funds. If you are not investing, you don’t stand a chance to benefit from such initiatives and programs.
- You will not have the opportunity to start or expand a business
Investing is an important part of business creation and expansion. Many investors like to support entrepreneurs and contribute to the creation of new jobs and new products. They enjoy the process of creating and establishing new businesses and building them into successful entities that can provide them with strong returns on their investment.
- You will not have the opportunity to support others. At least not the way it matters.
Investing is not just about putting out some money to get good returns alone, it is also a means of supporting someone else’s dreams. Many investors like investing in people, whether they are business owners, artists, or manufacturers. These investors feel good helping others achieve their goals while also making some money in the process. Call it a win-win situation.
- You will not be able to enjoy the full benefits of the taxing system
We’ve mention the importance of taking advantage of available tax opportunities as an employee but let’s look at the benefits that the tax system affords the business investor. As a business person, if you generate a loss from an investment, you may be able to apply that loss against any gains from other investments, which lowers the amount of your taxable income. It is not as complicated as you may think. In a nutshell, you get to have more control over the taxes you pay and your money.
- You will likely work forever!
If you fail to learn the golden lessons of investing your savings; forget retiring early; in fact, you can kiss your retirement goodbye! You know why? You’re likely never going to have enough money to keep you comfortable when you are no longer able to work the regular nine to five.
In summary, while I agree that investing comes with its risks and you could lose your money, not investing is surely going to cost you much more than you are willing to pay. This is not asking you to rush into any available investment opportunity, you may need the counsel and the guidance of investment professionals; but by all means, find some meaningful investment for your savings.