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Why i should invest my money?

In many cases, investing is seen as an activity for people with large amounts of money or very expert in the subject, something that is totally far from reality. The truth is that investing is simpler than it seems:

No, we don’t need to have a large fortune to start investing, nor do we need to be the mega-experts in finance.

In fact, the difference between saving and investing is that, in the latter, over time we will most likely see positive results. However, if we only dedicate ourselves to saving, expenses, inflation and other factors will gradually eat up our money, instead of giving us profits.

With this in mind, we have to ask ourselves the question: why invest? We are going to explain why saving is not enough, and the risks we really take by doing nothing. Because yes, the risk is in not investing. Let’s see why.

Saving is not enough (inflation)

If we gather money month after month and maintain a capital sum, we are already achieving something difficult, which few do. Reason to be proud! However, now let’s think about the fact that, after all that effort, we end up losing instead of winning. Doesn’t sound good at all, does it?

⚠️ Important: Inflation never stops and will always eat away at our savings, especially over the years.

In the long run, keeping money in the savings account or under the mattress is not our best option. Stagnant money can only go in one direction.

Therefore, simply keeping a sum of money under the mattress is not enough. Investing will generate real interest from the moment we start doing it, revaluing your savings and eventually over time we will probably end up getting more money than we invested at some point. Profitability to the power!

The future is unknown: better to be prepared

The only way to face the economic future is to build in the present, so the most important thing is… to start as soon as possible! To invest, it is necessary to have a minimum capital saved and there are several ways to start with little money, so there are no limits if we intend to do so.

Our objective will determine whether we should invest in the short, medium or long term. We should not be afraid of the risk of moving our money… but of letting it stand still! We’ve already seen the consequences of that.

📈 And why invest? Because it has been proven to be the best way to face the future, as we will be able to generate profits with little effort and taking reasonable risks.

And what about pensions?

Public pensions will either come or they won’t. They are becoming more and more doubtful and there is again talk of how difficult it is to maintain them over time. Demographics make it complicated to maintain, the different politicians have been tightening the measures, the conditions for their collection and the amounts to be collected… it really does not seem a good idea to leave our future in the hands of others who time and again have proven to be dubious managers of the common good.

More than accumulating… is to make our money work so that it grows.

Money is constantly decreasing in value, and inflation also causes our purchasing power to decrease over the years. If we accumulate capital over the long term, it is likely that, even if we have the same money, we will buy fewer goods with it.

This is not to say that investments are risk-free, of course. However, among the reasons to invest is that historically returns outpace inflation. By a long, long way.

A very interesting concept when thinking about investing is the following:

  • Investing there is always some risk of loss, but by saving for the long term the loss is guaranteed.
  • Investing today is easier than ever.
  • There are no excuses!

One of the great improvements in today’s financial system is that thanks to many disruptive companies investing is becoming easier and cheaper.

These new technologies and forms of investment are characterized by being developed entirely digitally, with low costs and also, thanks to services such as robo-advisors it becomes easier to make decisions and maintain investment portfolios.

💡 A robo-advisor is a portfolio manager that invests in Index Funds in an automatic and computerized way.

We could not close without emphasizing that another key element in the democratization of investment today is the accessibility of training and information on the Internet.

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