WHY DO YOU NEED TO INVEST ? 1

BEFORE ANSWERING THE ABOVE QUESTION WE NEED TO UNDERSTAND SOME BASIC TERMS.

1. INFLATION: JUST TRY TO REMEMBER WHAT THE PRICE OF PETROL, CLOTHES,FOODSTUFFS,HOMES,etc WERE 5 YEARS BACK.ARE THEY THE SAME STILL? CERTAINLY NOT,THEY HAVE ALL BECOME DEARER ISN'T IT? THATS WHAT INFLATION IS,INCREASE IN PRICES OF ENTITIES WITH TIME.(AND MANY THINK WHAT BIG FUSS INFLATION IS )
   
2. INCREMENTS: HAS YOUR SALARY INCREASED IN PROPORTION WITH THE INFLATION.HERE YOU NEED TO REALIZE THAT YOU SHOULD APART FROM MEETING YOUR EXPENSES YOU SHOULD BE SAVING ENOUGH.
3. PASSIVE MONEY: LETS ASSUME YOU SAVE Rs5000/- PER MONTH (WHATEVER BE THE CURRENCY). SO ANNUALLY YOU SHOULD SAVE AROUND Rs.120,000/-.THAT MEANS YOUR MONEY JUST ROTTED IN YOUR CUPBOARD WHILE YOU KEPT SLOGGING TO SAVE MORE OF IT. I TERM THIS MONEY AS PASSIVE,BECAUSE IT ISN'T WORKING FOR YOU. SOME KIND OF INVESTMENT IS GOING TO MAKE IT WORK FOR YOU.