Why do we need to invest

Have you ever wondered how the rich acquire their wealth and the wealth of increasingly growing? Did you ever dream to retire early? Do you want to beat inflation?Again that should be remembered is not an investment scheme to be a "get rich quick". In investing there would also experience a "learning curve", where you need to learn how to manage your own money.

Investment understanding itself is actually quite simple, namely how to cultivate your money so that the money is working for you. You will be referred to as an investor if you put your money in an investment medium that can generate more revenue or grow in value. Remember, in every investment, will dibarengin with a number of risks that are usually comparable to the yields produced. The higher the yield, the higher the risk.
Here are the reasons why we have to invest.
Inflation
Inflation is the increase in the price of goods or services. This is the fundamental reason why we have to invest, because the purchasing power of our money will be reduced by inflation. One million ten years ago to have a higher purchasing power than the one million this year. With the investment, the value of the money you now have the same purchasing power with your money next year.Protecting the value of assetsGiven that inflation will "menggrogoti" your assets, should you protect your assets so as not reduced nilaiya. And instruments to protect your assets is to invest.Make ends meetIn everyday life you desire is certainly there that you want to accomplish, both fundamental desire or not. For example, the desire to buy a house, a car to desire a large pension fund. Reason needs mendorng is exactly why we have to invest.Adding to the value of assetsSurely there is your desire to improve and manambah value of your assets than before. For example, by previously only had one house, hoping to add majadi more than one house so that your property assets increases.