Thread by @KhushbooAGala

Thread 🧵on Why to Invest Money ❓

Must read for everyone, especially youngsters....

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#FinancialLiteracy #InvestmentPlanning

1⃣ With the passage of time the term #Money has become one of the most important necessity of everybody’s life, without which thinking about anything is next to impossible.

2⃣ Today with increasing human wants, longer life spans, and huge number of opportunities available to spend, just #earning good is not enough; it is equally important to #invest money wisely to ensure that it is generating a good return to secure yours and your family’s future.

3⃣ Before proceeding any further, it is important to understand the meaning of the terms #Savings, #Inflation and #Investment

4⃣ Savings : The amount left with an individual after meeting the cost of living from the amount that he or she earns in a given period of time is known as savings. These savings are used to meet future needs and expenses.

5⃣ Instead of keeping these savings idle, it is advisable to use it for getting good returns on it for a better future ahead. In financial terms this activity is known #Investing.

🏦💱

6⃣ Inflation: #Inflation is the rate at which the cost of living increases and the value of money decreases.

In other words, money will not buy the same amount of goods or services in future as it does now or did in the past.

7⃣ Investments: #Investment refers to allocation of surplus money, after all expenditures in some investment avenue (#Gold, Bank FD, Post Office Saving Schemes, #PPF, #MutualFunds, #Shares, etc) with a goal of generating income or appreciation in value over a period of time.

8⃣ #Investments help you to meet your long term needs and large #financialgoals.

9⃣ Now answering important Why to Invest ❓

Many youngsters often ask us why there is a need to invest, isn’t saving just enough? This question can be answered by example explained ahead. 👇👇👇

🔟 Example 1 - When our dad was young, a movie ticket used to cost around Rs. 1/-. Today the value of the same ticket would be around Rs. 100/-.

1⃣1⃣ Example 2 - There was a time when people used to work for a salary ranging between Rs. 250/- to Rs. 400/- per month. Now we work for an amount of Rs. 25,000/- to Rs. 40,000/- or more per month for the similar job.

1⃣2⃣ - This increase is because of inflation. This means that, if the price of everything goes up, the income also go up.

1⃣3⃣ Now imagine if in those days, our dad would have saved Rs. 1/- thinking that he might use it when he gets older to watch a movie, then today with that Rs. 1/- I am sure he cannot buy anything more than a candy for himself.

1⃣4⃣ Moral of story is that worth of Rs. 1 has dramatically reduced over the years. Therefore to fight against evil of inflation just saving our money is not enough, but investing those savings by proper planning is also very much important.

1⃣5⃣ Suggestions & Feedback Welcome. 🙏

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