by Stanley Courage Dugah

Created on: August 08, 2009   Last Updated: August 09, 2009

If saving money is the basis of sound financial planning, then investing is its backbone or what it takes to sustain wealth. Yes, you can save as much as you want from your income, but it'll become useless if you let it lie idle. And investing that money is the only way you can put your money to work to help make you wealthy or sustain your wealth.

Still not convinced about the need to invest your money? Then, take a look at the following reasons detailed below.

1. To Sustain and Increase Wealth

As said earlier on, investing one's money is key to sustaining wealth. Even if you have a nice house and a well paying job, you need to invest in making more money. Life is so uncertain that you can lose your job at anytime.

Though saving money down is safe and a good idea, you need to invest also, to protect yourself from the uncertain fall in the value of currencies. Secure your wealth in safe asset classes (such as government bonds and treasury bills) instead of in a savings account.

If you aren't sure of how to safely invest your money, read these articles.

2. Achievement of Financial Goals

We all have financial dreams we wish we can live, don't we? And the good news is that, through investing, we can make our financial dreams realities.

If you constantly dream of having a nice house, a car, and other luxuries of life; know that the income you get from your day job and your savings account can't take you there.

To attain your financial dreams, you'll need to develop two or more income sources, and that's what investing helps you to do.

When you invest part of your income/savings in asset classes such as bonds, shares, and mutual funds, you're not only guaranteeing your financial future, but paving the way to eternal financial freedom and independence.

Moreover, if you invest in learning more about investment and becoming an expert or "near-expert" in investment, you'll be able to make as much money as you can to secure your financial future.

If you're, however, not interested in becoming an expert in investment, you can safely invest your money in asset classes that are safe and won't demand much time and expertise from you; government bonds and treasury bills

3. To Build a Retirement/ Emergency Fund

Sometimes, financial plans may suffer drawbacks such as a sudden job loss, loss of and assets or illness (that involves a lot of medical expenses). These are things that can prevent you from achieving your financial goals. For instance, if you have money

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