Just about the most important question about investing we often get is;
“Why should I invest my money”
Part of our goal is to teach you why you should invest some of your money on revenue generating assets to cushion your money from the harsh impacts of inflation and for your retirement.
If you are asking the question why I should invest, then here is the simple, sharp, sweet answer.
Investment protects your money from inflation. You see, the biggest enemy we are all fighting here in our country PNG is inflation. Inflation is the general increase of the prices of goods year after year after year. Inflation hits everything from our basic necessities and our comforts in life. Nothing and no one is exempted.
Few years back, a packet of Lae Biscuit sold for about 20 toea. Today, the same biscuit, same weight, ingredients packed in same packet sells for K1+. This is the impact of inflation. Similarly, many years back, it was possible to go high school with school fee less than K100. Now is over a K1000. Now it’s very difficult to live in the towns and cities of PNG with a fortnightly salary of K300.Whether we like it or not, the prices of food, transportation, rent, electricity and other necessities will continue to increase. And in the same way, the things that a kina can buy will decrease.
Inflation Pushes You Away from your Dreams
Inflation doesn’t only affect our current lifestyle. It also affects our dreams for the future. Imagine that you’re in a marathon, and at the end of it you get to choose your dream car, home and vacation. It doesn’t matter if you come in first or last place. You get the prize as long as you finish. You’ve been running for quite a while now. You feel your muscles are already getting tired. You see other runners in the front, and some are running along your side. From time to time you see a runner on the side of the road lying down and resting. All of a sudden, a fellow runner taps you on the shoulder. You look at him and he signals you to look down on the ground. You look down, and see that your shoes are untied.
As you’re tying your shoes, you notice that the ground you’re on is moving backwards. Puzzled, you feel the soil, and take a closer look at it. It really is moving backwards! It’s slow, but it’s moving backwards. You take a look around to see if the ground was like that everywhere. You take a few steps away from where you were and check the ground repeatedly. After several checks, you realize that you’ve wasted a lot of time looking at the ground. So you jump back on your feet and start running again. You’ll just push yourself harder towards the finish line.
This is inflation. It moves us financially backwards little by little. We know it exists, but we ignore it. We just keep on working hard for our dreams, but what we don’t realize is that inflation is pushing us back further and further away from it. The good news is that we can fight inflation. This is by learning how to invest.
Fight Inflation by Investing
Inflation continuously divides people into 2 types:
- Those who can invest above inflation and,
- Those who can’t.
Those who can invest above inflation will be able to accumulate wealth and become rich, while those who can’t will create poverty and become poor.
It is unfortunate that very few Papua New Guineans know how to invest above inflation. This is one explanation why so many Papua New Guineans are poor.
Related posts on wealth creation in our Hubpages site. Take time to visit and read the articles to get a better understanding of the importance of investing for your future.
- Rich Mind Vs Poor Mind
- 4 Steps to Build Wealth with Residential Property
- 6 Investment Vehicles to Grow Your Wealth
- How to Use Leverage to Grow Wealth
- Two Key Steps to Becoming a Millionaire