Well! you are here to know why people invest? Yes, that is the same reason why you reading this line. That is getting a benefit or expecting benefit from some sort of activity. Maybe reading a blog or maybe eating a pizza.

According to Finance or Accounting terms “expecting a larger amount in future by doing some activities from the current.”

Why we expect a higher return in future?  One word can define all; “Inflation“.

We may recall the time value of money. Today One Dollar is more powerful than tomorrow. It defines today anyone can purchase more commodities by One Dollar than tomorrow.

People give us $ 100 today expect to consume $ 105 or more of goods and service in future.

“What is Investment?”

The current commitment of these saving (whose consumption is lower than income) for a period of time to derive a rate of return that compensates for the time involved, the expected rate of inflation, and the uncertainty.

Common reasons for investment;

1. Secure the future.
2. Grow the money.
3. To earn.
4. For getting a tax benefit.
5. An investor can help others.
6. To start a business.
7. To reach financial goals.
8. Making a difference.

Why should I invest in stocks?

This is another common questions I found mostly from my friends and family. Well those are the most reasons you should invest in stocks;

• The potential to earn higher returns than alternatives like bank deposits, gold, and government bonds.
• Stocks have the ability to protect your wealth from inflation, as the returns often significantly outpace the rate of inflation.
• Anyone can earn regular passive income from dividends (A companies distributed profits called dividends).
• The ability to own a tiny slice of a company whose products or services you love. Think about it the bank in which you depositing money, you own a slice of that bank perhaps make you feel better.
• The ease of buying and selling, which makes stocks a more liquid investment compared to other options like houses and other fixed assets.
• It is easy to diversify your investment in stocks from real estate to tech companies as per your wish and like.
• Most I love about stock is, I can invest as much low as I can The ability to start small.