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why should you invest?

The bottom line reason to invest is - inflation. Everything is going to get more expensive and your FDs are not going to do your wealth any justice. Another reason is the power of compounding. We all have goals for the future, and investing is a great way to start working towards them now. Buying a home or a car, marriage, a holiday trip or even a brand new laptop - you can reach these goals and earn more than your target amount if you start right now. Investing is very important to the top 1% because it’s what keeps them there.

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Investing your salary can help you to grow your wealth over time and prepare for your financial future. By investing your money, you can potentially earn a higher return on your savings than you would with a traditional savings account, which can help you to reach your financial goals faster. Additionally, investing your salary can provide you with financial security and peace of mind, knowing that you are taking steps to secure your financial future.

Inflation is the rate at which the general level of prices for goods and services is rising and subsequently, purchasing power is falling. Central banks attempt to limit inflation and avoid deflation, in order to keep the economy running smoothly. Inflation is measured as an annual percentage increase. For example, if the inflation rate is 2%, then a basket of goods that would have cost ₹100 a year ago will now cost ₹102. This becomes even more severe in the long run. Right now it is predicted that due to inflation in India the value of ₹1 Crore in 30 years will be worth approximately ₹23 Lakhs according to RBI’s forecast.

It's generally a good idea to start investing as soon as you have some money to invest. The earlier you start, the more time your investments have to grow. This is because of the power of compound interest, which allows your investments to earn interest on top of interest, resulting in exponential growth over time. Additionally, starting to invest early can help you to get into the habit of saving and investing regularly, which can be beneficial for your financial well-being. That being said, it's also important to make sure that you have enough money to cover your basic needs and any outstanding debts before you start investing.