It is tough to just keep buying when there are many headwinds for the market in terms of inflation, geopolitical tensions and rate hikes.
However, investing is important and " saving for your future, older self is one of the main reasons why you should invest. But, your future self isn’t the only reason to invest your money. You should also invest because of the financial forces that are working against you every day."
Saving and investing are the two key themes of the recently launched book - Just Keep Buying: Proven Ways to Save Money and Build Your Wealth- by Nick Maggiulli who is a popular finance blogger.
Maggiulli's book talks about attaining financial freedom which has been the theme of past several books. However, what makes it different is that the book not only tries to address the basic questions about the finances, it also talks about the ways to fix your finances.
Maggiulli talks about how inflation erodes the money you save as the prices of everyday goods ideally double every two to three decades.
The author claims investing is an effective way to fight back inflation.
Another reason why one should invest is to replace human capital (the value of your skills, knowledge, and time) with financial capital.
In his book, Maggiulli writes: "While your skills and knowledge can increase throughout your life, you will never get more time. As a result, investing is the only way in which you can fight back against the march of time and turn your diminishing human capital into productive financial capital. Financial capital that will pay you long into the future."
"In essence, by investing your money you are rebuilding yourself as a financial asset equivalent that can provide you with income once you are no longer employed. So, after you stop working your 9 to 5, your money can keep working for you."
Disclaimer: The article is just a small gist of the book "Just Keep Buying: Proven ways to save money and build your wealth" by Nick Maggiulli. The views have been taken from the book and are not of MintGenie.