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Today we will talk about investing your money which is the only way to gain financial freedom in the long term. Investing is the best way to make your money earn more money for you and secure your future in the process.
We sincerely hope that you have already started investing. If not, then you must start today to get the following compelling benefits.
1. It is a great source of passive income
One thing that the ongoing corona virus crisis has taught us is that we cannot solely rely on your regular income. If we Are unable to earn our regular income for some reason, we can land up in immense hardships.
To mitigate this risk, you will need to have a second line of income which will help you to sustain yourself in times of such crisis. This can be your investments in Fixed deposits, equities, Mutual Funds, properties, and other assets. These investments will continue to earn returns for you even when your regular income stops and enable you to tide over the situation comfortably.
2. Brings financial Independence
Are you afraid of becoming dependent on others after retirement for your monetary needs? Do not worry. You can get financial freedom in your old age by investing regularly to create a retirement Corpus. The passive income you will earn from this corpus will enable you to take care of your monthly expenses and other needs comfortably after retirement.
3. It lets you follow your passion
Do you dream of retiring early to pursue a passion that you have? If yes, then your investments are the key to achieving your dream. Your strategy should be to invest and accumulate wealth in a planned way in your early years and when you accumulate a sizable wealth, retire early.
The passive income you earn from those investments will help you to meet your expenses thereafter while you are busy in actively pursuing your passion.
4. Helps to beat inflation
Inflation is a fact of life which none of us can avoid. It reduces the purchasing power of money we have and makes us poorer as time passes by. Unless you take steps to address this problem, you can be in serious trouble.
The best way to combat the negative effect of inflation is to invest the money that you have in your hands today. Investing regularly will enable you to beat inflation and your purchasing power will not go down.
5. Get tax benefits
Did you know that your investments can get you tax benefits too? Various investment products like PPF, ELSS, Tax Saving Bonds and long-term fixed deposits offer tax benefits under section 80C of the Income Tax Act 1961. Invest in them wisely to reduce your tax burden.
You need to start investing regularly in a disciplined way to get the benefits I have talked about. Let your money turn into a sizable wealth over time and gain the financial freedom that you dream of.
This article is for education purpose only. Kindly consult with your financial advisor before doing any kind of investment.
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