IMPORTANCE OF INVESTMENT | INVESTING

The importance of investment cannot be fully appreciated without firstly coming to terms with the meaning of investment. To get better insight on the meaning and definition of investment, please kindly refer to the hyperlinked article on what is investment. This article on the benefits of investment is a follow up on an early article that explains what investment is in a simple everyday language which you can access following the link above.

It is fascinating to discover that many intellectuals occupying high positions in government and public offices do not have good grasp of the importance of investment. If they do, they would not be neglecting investing activities like they do. This probably would serve as a good explanation to the vicious cycle of various economic financial crises that have hit us in the past will continue to hit us even harder.

Yes, it is a well known fact that people in the higher echelon of the society work closely with politically competent advisers, but, our economy is too important to be handled by people who had no basic knowledge of investment.

I once attended a function where I was fortunate to meet one of the politicians who carelessly made a statement that exposed his ignorance. Here is what he said “…why are people bothering themselves trying to figure out how to invest when they can just save… ”. Well, nothing is wrong with saving but how would an economy grow if everyone saves all their free cashflows?

Remember that investment is the catalyst that stimulates an economy thereby encouraging sustained economic growth. This statement shows that he does not understand the importance of investment let alone having the right skill to sieve out a good investment from a bad investment.

This article is written to clearly identify the importance of investment in a modern society. I tried as much as I can to avoid using technical words that might act as an obstacle in the process of conveying the message. I hope you will find this article both interesting and informative. In this post, I talked SEVEN (7) IMPORTANCE OF INVESTING IN AN ECONOMY

You will agree with me that we live in an unstable world where things quickly get stale and obsolete as soon as they stop being fully engaged with. Resource or assets quickly deplete in value if they are not stimulated. Through investment, below are 7 positives and benefits that any society stand to gain through investment.

7 IMPORTANCE AND BENEFITS OF INVESTMENT

PRESERVATION OF OUR WORLD: Have you ever reflected on what would become of us if all we do is to consume resources without making plans for tomorrow? Through proper investments, our world is preserved. A lot of investments is going into greener energy and electric cars for example all in a bid to ensure that we have a cleaner and healthier world to live in.

ENHANCEMENT OF KNOWLEDGE: Through investments, knowledge is improved and enhanced. This is why all successful businesses have some sort of R&D unit or the other.

TAKES US OUT OF RAT-RACE: One sure way of getting out of poverty and embrace financial independence is through investing. I have never seen anyone poor person who has gained financial independence without making one investment or the other. 

TO SECURE THE FUTURE: The future will almost be guaranteed through what we safely put aside today by way of investing it. Farmers plants their seeds (investing it) today so that we will have more to eat tomorrow. 

FOR PEACE OF MIND: With the right kind of investment comes real peace of mind. Nobody will be stressed out if they are certain that their tomorrow is taken care of. That is what investment can do for you.

ENHANCING DEVELOPMENT: Another importance of investment is through it, resources are aggregated into clusters that can then be utilized for economic growth and development. 

CREATION OF JOBS: I don’t think any job ever created existed outside of investment. Job creation and investment are inseparable. 

ENCOURAGES PEACE: People will always advocate for peace in a society where they have some form of investments. This is one of the reasons why most wealthy people are peace ambassadors.  

I can’t possibly imagine any improvement or achievement of anything if not for the positive impact of investment. Anyone who does not appreciate the importance of investment is like someone who does not appreciate the importance of accounting.