Why invest?

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That is the question one must ask herself or himself. Why invest?

The world is still in middle of the crisis brought about by the financial downturn in the US and the current debt problem of Greece. Bailouts and measures to ensure that economy keeps on rolling are being made in all parts of our world so that economies will have a sound standing to keep the money running. So why invest still amidst this terrifying news we hear day in day out?

As Bob Proctor said in his book “You were Born Rich” money must keep on rolling and as Robert Kiyosaki has re-iterated in his book “Increase your Financial I.Q.” even though the value of money is going down we must not be stump and hoard all our money and keep it under our beds. Money itself loses its value and when we don’t let it roll and grow by means of investing in 5 to 10 years your hard earned buck might be not be able to buy that gum you use to buy in the convenient store. 

Time has this magic that either makes things better or worse. So how will we combat this value losing mechanism? That is where investing goes. Many people think investing is investing in stock, but in reality there are so many ways to invest. You can invest in business or some others term it cashflow, in rental property, or in paper assets which are commonly in the form of stocks or bonds. 

Yes it is scary when we put our hard earned in the stock without you knowing how much will you get back in return. But that is only when you invest in stock for the short term. The stock market goes up or down depending on economic forces. It seems that you have a limited control over it; the thing is investing in stock is better down on long term. Most great investors call this dollar/peso averaging. It means that we don’t look at the changes on a day to day basis but rather on a longer range let say 5 to 10 years. 

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About the blogger

Louis Delos Angeles is a Certified Public Accountant, blogger behind Investing in Philippines, and author of Investing in Stocks: Preparing for the future small amount at a time. Check him out in Google+ Learn more about Louis and his financial freedom advocacy here.

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