What Is the Importance of Investing?

Investment gives your business essential the capital that it needs to get off the ground (if you're a start-up) or to get to the next level (if you're more established). It can mean the difference between success and failure, or between reaching your full potential and only getting partly close to it.

The importance of investing cannot be overstated. Money is a fluid thing. Something worth one dollar one day could cost significantly more the next day. This is because history shows us that things always cost more over time. When you view this dynamic over years and decades, it becomes obvious that doing nothing with your money will cause it to lose its buying power. It is therefore important to invest to make your money grow rather than shrink.

Investing is also a way to help save money for a major purchase. This can be for a home, car or vacation. The more your money grows while it is invested, the faster you will reach your investing goal. Like the emergency fund, the investment should have as high a growth potential as possible without having too much risk. However, if the savings goal will take you several years to achieve, it is worth considering a little more risk in exchange for a little better return.

Investing is especially important for long term savings goals. The best example of this is college savings for children. The most important reason to invest is for retirement. When your working days are over you will need money to survive. Retirement investing has the longest time horizon of all. As a result, you can afford to take chances while you are young. As with college savings, you should shift to more conservative investments as you approach retirement age. 

If you don't start investing now, expect to be in the poor house later.

There are many investment calculator tools available online. Investment calculator can help you plan your way to overcome the requirements identified by you in the Savings and Retirement Needs calculators.

Here is one of the investment calculator.

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