Growth & Jobs | Seven compelling reasons to start investing today

Investing is often regarded as a cornerstone of financial growth and stability. Although many people may feel intimidated by the thought of entering the financial markets, Delories Jones, senior vice-president of sales strategy and marketing at JN Fund Managers, says the benefits of investing far outweigh the initial learning curve.

She outlines seven compelling reasons to start investing;

1. Build Wealth Over Time

Investing is one of the most effective ways to grow your money. Through the power of compound interest, your initial investment can grow exponentially over the years. The earlier you start, the more time your money has to multiply, allowing you to achieve significant financial milestones.

2. Beat Inflation

Inflation gradually erodes the purchasing power of your money. By investing in assets such as stocks, mutual funds, or real estate, you can earn returns that outpace inflation, ensuring that your money retains and grows its value over time.

3. Achieve Financial Goals

Whether it is buying a house, funding your child’s education, or planning a comfortable retirement, investing helps you allocate resources towards your long-term goals. With disciplined investing, these goals can become more attainable.

4. Diversify Income Streams

Investing creates additional sources of income beyond your regular salary or business earnings. Dividends from stocks, interest from bonds, and rental income from real estate are some examples of how investments can supplement your income.

5. Benefit from Market Growth

Historically, markets tend to grow over the long term despite short-term volatility. By investing in a diversified portfolio, you can capitalise on the overall growth of the economy and benefit from rising asset values.

6. Prepare for Emergencies

Investing builds a financial safety net. By maintaining an investment portfolio, you can ensure that you have resources to draw on in case of emergencies and to reduce the stress of unforeseen expenses.

7. Empower Financial Independence

Investing enables you to take control of your financial future. Rather than relying solely on a pay cheque or pensions, a robust investment strategy can give you the freedom to make life choices without financial constraints.

Jones notes that starting your investment journey doesn’t have to be overwhelming. “Begin with understanding your financial goals, risk tolerance, and available resources. Consider consulting with a financial adviser to create a tailored investment plan. There are also numerous online platforms and tools that make investing more accessible than ever before,” she said.

She encourages: “Remember, the key to successful investing is patience, discipline, and a willingness to learn. The sooner you start, the sooner you can enjoy the rewards of financial growth and security. So why wait? Begin your journey to financial empowerment today.”