At some point, your business will have enough money, and you will think, “I should invest some of this somehow.”
The following are a few reasons why you should consider investing some of the profits your business makes.
Invest to Grow Your Money
Growing your money is the primary reason you want to invest profits from your business. The money you invest now can increase your earnings by approximately 10% per year over a few years. So, if you invest $10,000 in stocks today and you make 7% to 10% per year, you can turn that $10,000 into $20,000 in ten years.
Now, if you made a $10,000 investment every year for thirty years, and it makes 10% every year, your money will grow to 1 million over those 30 years.
Take Advantage of Compound Interest
Compound interest is the reason why your investments can rise so much over 30 years. So, when you are buying and selling regulation A+ Shares, you can use the interest compounded every year to increase your investments. Regulation A+ Shares (or Reg A+) allows the general public to purchase the shares of small businesses.
If you invest $1,000 one year and get a 10% return, by a year’s time you will have $1,100. But then you receive an additional 10% by year two, which will give you a return of $110. Compound interest is the key to making the profits you make increase year after year.
Build Wealth
Many people have become wealthy by simply investing in the stock market. Learning to invest in the stock market can turn a small nest egg into a substantial one.
Beat Inflation
If you do not invest in stocks, you could lose the value of your money because of inflation. Inflation is the term we give to increasing product prices, which causes the money’s worth to decline.
Investing your profits can help protect your profits against the risk of loss caused by inflation.
Retirement
By investing your profits, you can save to retire comfortably. If you create a plan and know how much you will need to retire comfortably, you can invest some of your profits to have the money available when you plan on retiring.
Investing wisely in reliable stocks can help you hedge your profits against inflation and make your money work for you so that those profits increase over time. It is only a matter of creating your plan and investing wisely.
