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Why Invest ?

The big question about investment is why invest?

Why? What is your reason or reasons to invest? What is it, what is the idea behind it? What is the purpose? What is the goal? What is the objective? What is that? What are you looking for when you make investments?  You need to have a purpose as to why you want to invest, because if you don’t have a why, then, you know, there is no reason for it.

We can come up with many reasons for that, but you will have your own particular reasons. Why do you want to make any investments? Why is that? The reasons we came up with are simple:

  • You want to manage your finance;
  • You want to grow your wealth;
  • You want to control your money and you do that through investments;
  • You want to make the money work for you;
  • You want to take control of your money and put it to work because you have certain goals you want to reach. And for that, you need money:
    • You have your children that are going to college;
    • You want to buy a new car;
    • You want to renovate your house;
    • You want to buy a new house…

Understand your Why

It is important to understand why you are doing this? When you invest, there are lots of risks therefore the importance of what type of investments you make are also important.

Now, when you are investing, you most probably have goals in mind, goals such as, buy a new house, pay for your kid’s college, buy a car or want to travel and when you are investing you will invest with one of two purposes:

  1. To build value so at a later stage you can sell and generate a profit;
  2. To start generating some recurring income and that income will pay for what you want to pay or buy.

To give you an example, say you have €10.000 and you want that to become €20.000 or €30.000 or more, and/or you want to generate income. You want those €10.000 to be placed, not necessarily appreciating in value, but generating revenue. Let’s say those €10.000 have been shrewdly invested and are producing €1.000 or €2.000 per year or more and you just get that as a recurring income. It’s not necessarily increasing in value. It can increase in value too, but it is essentially generating income.

The journey to get a productive investment is challenging and will be an emotional rollercoaster, that is the reason why you need to have your own WHY perfectly identified, so it’s a powerful reason to keep you on track and focused on the final goal.


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