A lot of people talk about the importance of investing, in order to provide for yourself in later life. Indeed, many people consider the path to financial freedom is almost impossible without having a decent investment strategy in place; as when you invest you stop trading time for money in the conventional way that most employees and self employed people do – instead, you leverage an asset or resource to generate income for you.
This is often known as ‘passive income’ as it is the type of income that doesn’t require you to trade your time for money. That’s not to say it doesn’t require effort, as first off you need to come up with the money to leverage, if you are going to put it in a high interest savings account, for instance; or if you are planning to build an asset such as a rental property, or perhaps a portfolio of rental properties, then there’s much work that will need to be done in the early days.
The key difference between the investment mindset and the “trade time for money” mindset is that of delayed gratification. The majority of people today want instant reward – indeed, some people are living from advance rewards (i.e. living from a credit card before they’ve even earned any money) which is symbolic of how focused we have become on instant gratification.
The investor, however, must get comfortable with and embrace the prospect of delayed gratification – in that, investments tend to take some time to mature. It’s essentially the difference between planting an orchard of apple trees, but going without fruit for several years, to then enjoy a lifetime of abundance… versus, picking the apple from a tree and eating it immediately – which is a very convenient and instantaneous way to reap reward, but it is not sustainable, and keeps people trapped in a state of constantly having to work in order to keep a roof over their head.
Many people look to sites such as Midas Letter to get up to speed with the latest trends in terms of cryptocurrency, for instance, hoping to invest a few hundred pounds or dollars and for this to turn into tens of thousands a few months down the line. Now, whilst that is a proven possibility, the majority of people take a more slow and steady approach to their investment strategy.
Here’s three reasons you should consider investing:
- SAVE FOR RETIREMENT
With the precarious nature of the current and future economic climate with the looming ‘pension crisis’ it pays to be in control of your own retirement fund and invest in your future financial security via assets that you control.
- SUPPORT OTHERS
Investing in small businesses, for instance, is a nice way to “give back” and support others whilst still growing your financial abundance.
- LEAVE A LEGACY
If you are trapped in the rat race of trading time for money, then you are going to have little left to leave your children due to the consumption focused instant reward culture we live in. When you invest, you can leave a willable financial legacy to your children and family.