Before understanding why we really need to invest, let us understand first What does investing actually mean? ” By Definition the term ‘Investing’ means the following : “put (money) into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.” You see we all exist just because our earlier generation had invested their part and built the empire we live in today. You are getting the shade of the tree just because someone else had planted the tree way back before you were when born and so you enjoy the profit — the shade. Let’s try to understand with an example what is investment? If you simply work a 9-5 job and spend your salary on luxuries and essential needs and saving the leftover amount in your Bank Account with an inner satisfaction that you’re getting a 5-6% annual interest, then you are only wasting your hard-earned money but also losing an important factor of time and compounding. Investment means to put your money into legit financial schemes like mutual funds, shares, bonds, stocks etc.

Let’s take one example of the stock market: In the month of January 2008, If I had purchased a share of Titan of Rs.8, today I would be enjoying a profit of 1070%. Yes that’s 10 times 100%. You see investment can give huge investments over a long duration. Let’s take another example: At the birth of your child, if you had invested Rs.3000 per month then you could have had a profit of 275% of Rs.27,00,000 when your child would have turned 20 years old just by a mere investment of Rs7,20,000 over a period of 20 years.

You see how a good investment plan could change your life