what is investment

 what is investment?

the money you earn is partly spent and the rest saved for  meeting future expenses . instead of keeping the savings idle you may like to use savings in order to get return on it in the future . this called investment .

why should one  invest ?

one needs to invest to :

.  Earn Return on your ideal resources.

.  Generate a specified sum of money for a specific goal in life.

.  Make a provision for an uncertain future.

One of the important reason why one needs to invest wisely is to meet the cost of inflation. Inflation is the rate at which the cost of living increases . the cost of living is simply what it costs to buy the goods and services you need to live . Inflation causes money to loss value because it will not buy the same amount of good or a services in the future as it does now or did in the past. for example, if there was a 6% inflation rate for the next 20 years , a Rs. 100 purchase today would cost Rs. 321 in 20 years. This is why it is important to consider inflation as a factor in any long-term investment strategy. remember to look at an investment's 'real' rate return, which is the return after inflation. the aim of investment should be to provide a return about the inflation rate to insure that the investment does not decreases and the value. for example, of the annual information rate is 6%, then the investment to earn more than 6% to ensure it increases in value. If The after-tax return on your investment is less than the inflation rate, then your assets have actually decreased in the value; that is, they won't buy as much today as they did last year.

What care should one take while ininvestors 

The sumar one starts investing then better. by investing early allow your investments more time to grow, whereby the concept of compounding (as we shall see later) increases your income, by accumulating the principal and the interest or dividend earned on it, year after year. the three golden rules for all investors are:

. Invest early

. Invest regularly

. Invest for long term and not short term

More about investment and related investment topics in our next post you can tell wait for next post.

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What are the benefits and drawbacks of social media

 

Social media has become an integral part of modern life. It has changed the way we communicate, connect with others, and consume information. However, like any other technology, social media has its benefits and drawbacks.

On the one hand, social media provides a platform for people to connect with friends, family, and acquaintances from all over the world. It allows us to share our thoughts, experiences, and opinions with a broader audience and can be used to raise awareness about important issues. Social media also enables businesses and organizations to reach a wider audience and promote their products and services.

On the other hand, social media can also have negative effects: It can lead to addiction, anxiety, and depression, as people become obsessed with likes, comments, and shares, Social media can also be a breeding ground for fake news, misinformation, and hate speech, which can have serious consequences for individuals and society.

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