This video will help you to understand why investing is important and how it will help you to deal with the inflation. Also, to know more on the basics of investing, you can visit

Why Investing is Important?

Money is one of the most important and crucial part of human life as it plays a major role for daily livelihood and creating wealth for future. Many people have the habit to save money, however saving is different than investing. Savings is all about keeping a part of your income aside for future requirements. Whereas investing is about using the part of your income to invest in various options which will help to grow money. Most importantly, investing will not only help you to grow money but it will also help you to deal with the “Inflation”. Consider the following example:

Your Income – 100
Your Expenses – 75
Savings – 25

After Inflation – Expenses increase but the income is still same

Your Income – 100
Your Expenses – 80
Savings – 20

Instead of saving, it is better to invest money at a particular rate of interest which would help to deal with the inflation. There are many advantages of investing, you can invest based on your future financial goals.

Some of the Benefits/Importance of Investing:

1. Grow your money – Primary benefit of investing is to grow your money. There are various investment options available in the market that offer better rate of returns. You can choose the best investment options based on your financial goals and risk appetite. Some of the financial investment options are given below:

Investing in Shares (
Investing in Mutual Funds (
Investing in an IPO (

2. Tax Saving Investments – There are various investment options which will help you to save tax. Some of these options includes –
tax saving mutual funds, ELSS funds, PF, PPF, tax saving fixed deposit, so on.

3. Financial Goal – You can make investments for your short, mid or long-term financial goals. Some of these can be investing for your wedding, child’s education or buying your dream home and so on. Start investing now to achieve your financial targets.

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