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Reasons You Should Invest Your Money

Published on February 25, 2013 12:37 PM EST

Are you starting your first job and are trying to decide whether or not to have a 401k? Perhaps you’ve never considered investing before and aren’t sure if it’s right for you. Or, perhaps, your employer doesn’t offer a 401k retirement plan or has a pension so you’ve never considered making your own investments. No matter what the reason is that you don’t have any investments, you should seriously consider investing your money if you want to have a stable future in retirement. If you’re still not convinced that investing is right for you, here are some reasons you should consider investing your money. 

Have Money in Retirement

Putting money into an investment account is all about being prepared for the future, which also includes your retirement. You can never be too prepared for your retirement, so it doesn’t hurt to have money put away into an account, even if you don’t think you’ll need it. You can never predict the future, so even if you think you’ll never retire, there could be extenuating circumstances that arise which may force you to stop working and if you don’t have the income to live off of, you could end up facing serious financial difficulties. 

To Have a Backup Plan

You may have an employer who provides you with a pension, so you feel that putting money into an investment account would be a waste of money. However, you can never guarantee that your employer-sponsored pension will be around forever or that you’ll always work for the same company, which is why it’s smart to have a backup plan. Putting money aside into an investment account makes good financial sense should something happen to your pension. 

To Grow Your Money

It shouldn’t take an investing for beginners course to realize that putting your money into an investment account can help grow your money. This is helpful if you think you’re going to need it for the future, like if you decide someday that you’d like to open your own business or make a major purchase that would benefit from the extra cash. If you’re looking to grow your money, investing is the way to go.

To Provide for Loved Ones

Nobody likes to think about mortality but the truth is that nobody is around forever. If you have loved ones who depend on your income for their day-to-day care, then having money set aside for when you’re no longer able to provide for them makes good financial sense. Not only does putting money away ensure that they’re taken care of when you’re no longer working, but it can also provide them with stability in the event that you’ll no longer be around to do it yourself. 

Free Matching Funds

If your employer offers an employer-sponsored match on their 401k and you’re not taking advantage of it, you’re essentially throwing away an opportunity to earn free money that you can use for your future. Whatever your employer offers in a matching investment program, put away at least that much so that you can get the matching funds, which can help provide you with income in retirement. 

These are some of the many reasons you should consider investing your money for your future.

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