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What's the purpose of investing?

"Investment" - This word is much used and often much abused one. One keeps on hearing this almost all the time be it in office or catching up with friends or attending a family functions - almost everywhere. More so when we are fed with lot of information about how one needs to make money work to get more money.

However, for a lot of people, the clarity on one question is often lacking - What is the purpose of investing?

And even if one knows his/ her purpose of investing, it is often not implemented in real life. For instance, purpose of one's investments may be having sufficient funds in times of need. Yet they may opt for a personal loan when faced with pressing need for money.

Based upon my observations, below are some of the most common purpose of investments (in no particular order)

  • I invest because there is some sufficient funds lying with me and I can get great returns.
  • I am investing for some specific goal - buying a house, education of kids, marriage of kids and so on.
  • I want to buy that one thing I have always dreamt of (e.g. a BMW)
  • Being financially independent - So that sometime in not too far future, my investments can take care of all my expenses.
  • I want to get rich quickly, like double my money in 6 months.
  • I want to insure my life. And get money back if I live beyond that period. 
  • Planning for retirement, as and when it comes.
  • I want to retire early, so I need to be prepared.
  • To get enough money to travel the world.
  • Getting initial capital for my business ready.
  • Save taxes as XYZ investment offers tax benefits. 
  • Investment? I have started a SIP. And I have company PF. Rest I will begin once I close my personal loan and car loan. And I am planning to upgrade my car next year. 
  • I invest because everyone is doing so.

What are your objectives for investing? 

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 You can also read this post on BeingFinWise

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Comments

  1. Anonymous2:36 PM, January 29, 2022

    I'm Helena Julio from Ecuador,I want to talk good about Mr Pedro on this topic.
    Mr Pedro and his loan company gives me financial support when all bank in my city turned down my request to grant me a loan of 500,000.00 USD, I tried all i could to get a loan from my banks here in Ecuador but they all turned me down because my credit was low but with god grace I came to know about Mr Pedro on a loan platform so I decided to give a try to apply for the loan. With God willing they granted me a loan of 500,000.00 USD. The loan request that my banks here in Ecuador have turned me down for, it was really awesome doing business with them and my business is going well now. Email/ Contact if you wish to apply for a loan from them.
    pedroloanss@gmail.com

    ReplyDelete

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