Why Invest?
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There are two reasons you should invest
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1. Protect the value of your wealth
2. Grow your wealth
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Your basic aim when it comes to investing should be to ensure that your wealth rises with at least the level of the inflation rate so that the value of your wealth isn’t eroded over time. With investing, the value of your wealth will hopefully grow at a rate greater than inflation.
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If you don’t take action on mitigating the effects of inflation throughout your lifetime, it will have a detrimental impact on your wealth. So how do you prevent your wealth from shrinking over time and if possible actually grow your wealth? You invest your money IN THE RIGHT PLACES.
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"THERE ARE TWO MAIN DRIVERS OF ASSET CLASS RETURNS - INFLATION AND GROWTH." - RAY DALIO
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