When you are working on trimming your personal household budget, it can be difficult at times to think about what tomorrow will bring. This is especially true if money is tight. Even though it can be challenges to find room in your budget, there are reasons why investing should be part of your monthly money plan.
Retirement
I don’t know about you, but at some point in my future, I would like to retire. Retirement is one thing that motivates me to not only get my debt paid off, but to invest at the same time. I made room in my budget to invest monthly so that later in my life when I decide to stop working every day, or I am no longer able to work, I will have the financial security to be able to do so without worrying about money all the time. Investing monthly ensure my money will continue to grow so I will be able to reach my retirement goals in the future.
Recreation
Another good reason to invest monthly is so you can travel and have great experiences. Through good investment choices and proper management of those investments you can travel to the places you’ve been dreaming about and have those great experiences. For me, investing provides greater returns than just socking my money away in a drawer or even depositing it into a savings account. My money grows while I am busy doing other things so when I am ready to travel, I have the funds available to pack my bags and hop a plane to whatever destination suits me.
Start a Business
If you’ve thought about starting a business in the future, you will need money to get it that business up and running. Investing is one way to go about that. Purchasing stocks, investing in mutual funds, or purchasing real estate are just a few ways you can grow your money for that future business venture you’ve been thinking about.
Education
Going to college these days costs more than ever before, and I don’t see that changing any time soon. There’s room and board, tuition, and books to pay for in addition to a meal plan and transportation, if your children plan to attend a college in a different city than where you live. All of these things can drive up the costs of your child’s education to the point where many people can no longer afford it. By investing on a regular monthly basis when your kids are young, you can ensure the money will be available to provide them with a good education when the time comes.
The bottom line is, there are a lot of reasons why investing should be part of your monthly money plan, and all of them are good. If you aren’t investing on a regular basis, you should be. The sooner you get started investing, the more money you will have to reach your goals when you need it.
Kayla is a personal finance blogger in her mid-20s who loves to write about money topics of all kinds.