Do you feel financially secure? Are you happy with your current financial situation? If not, investing could be the solution for you!
Investing is one of the most important tools you can use to achieve financial independence. Without investments, individuals generally only have one form of income, from their job.... The problem with this, even if you are a high income earner, is two things. First of all, is the income your earning right now going to be enough for you to live the kind of life you want to live, now and when you retire? Secondly, how secure do you think your job really is?
Would you believe, a whopping 86% of Australia’s 5.5 million baby boomers are, in varying degrees, financially under-prepared for retirement, according to research released by industry super heavyweight REST Industry Super. The baby boomer generation is seen to have most of the wealth distribution in today's society. So if 86% of the baby boomers feel they are under-prepared for retirement, how do you feel?
Another consideration is that the baby boomers are going to receive a pension upon their retirement, along with their superannuation, savings and investments if they have any. For the younger generations, there may not be a pension, or it will be much less than what Australians are currently recieving and possibly at the cost of higher taxes. Even the government realises there will be a problem with the aging population. As a result, the government has even raised the pension age from 65-67 years of age for anyone born after July 1957 and are also talking about raising superannuation contributions from 9%-12%.
What about your lifestyle? Do you want to be able to enjoy yourself when you retire? You may want to go travelling, spoil your family and do the things you enjoy doing. Having money makes life a whole lot easier. There are two ways you can make money, you can work for money or money can work for you. Now as you age your ability to work for money degrades over time, however; your money can still work for you if you set yourself up now for the future.
The next question for you is how secure do you think your income really is? If you lose your job, you lose your income. If you get injured and you cant work, you may lose your income. If you become ill, you may lose your income. When you become so reliant on one income for yourself or your families survival it is very risky. However, while most uneducated people will tell you how risky investing is it can provide you with much greater financial security than one source of income ever could.
Imagine you have cashflow coming in from a business, properties and the stock market. If you lose one stream of income you are still covered because of the others. This is what investing can do for you by making your money work. Investing allows you to take control of your finances and your life, so what are you waiting for?