Why Learn How to Invest Money?

Why learn how to invest money? 1

If you want to build your wealth and build it quickly, there is no better way than through investing your money.  Sure, it would be even easier and faster to win the lottery, inherit a large sum of money from a distant relative, or invent the next big thing, but all of those things have a much smaller success rate.

Why should you learn how to invest instead of just paying someone else to invest your money for you?

The more money that is invested, the larger and faster it will grow.  If you are paying fees and commissions to a financial adviser, that money is not getting invested, that money is not growing, and that money is not compounding.  Depending on how much you are paying your adviser or money manager, you may be severely limiting the growth rate of your wealth.

When you learn to invest yourself, you can effectively invest on your own.  You can invest your own money while simultaneously saving bundles on commissions and fees.  On top of that, because you are in charge of your own money, you know exactly where it is.  You don’t have to worry about trusting someone else with your money.

Wouldn’t a professional do a better job to earn you more money?

The stock market is unpredictable.  That means nobody, including “investment professionals”, no one can know for sure what stocks are going to earn the most money.  No one know where the markets will go for sure.  It is likely that over time the average return will be the same or close to the average return of the markets as a whole according to stock indexes such as the Dow Jones Industrial Average (Dow) or the S&P 500.

Once you read and study as much as you can about investments, including all kinds of investments, you can do very well to earn yourself a high return.  If you aren’t that confident in yourself, even after studying, you can invest in an index mutual fund and you don’t have to worry about it as much.

Even if you never choose your own investements because you decide to hire someone else to do it for you, you should still learn how ot invest.  If you know how it works, you can better understand your money and wealth and don’t have to worry as much.  If you know nothing about investing, you could easily get taken advantage of.