Investing is Important for Proper Financial Planning

While there are many things in life that are more important than money, such as family, friends, and experiences, life becomes exponentially harder when you don’t have the funds that you need to live. For the most part, people are able to handle their monetary needs by working, saving money, and making sure that they do not spend more than they make. However, here at Owner Builder Loans, LLC, we feel that there is an even better way to make sure that you are being as smart with your money as you possibly can be: investment. Investments allow people to make their money work for them, meaning that they can use the money that they already have in order to increase the overall amount of money that they have available to them. As a leading provider of investments relating to owner builder construction loans, we have quite a bit of experience with investments and, in today’s post, we are going to go over some of the reasons that investments are so important to a person’s overall financial situation. Continue reading below to learn more.  

Make the Most of Your Money

The world of investments can come across as intimidating to those who do not have experience with it but, with a little advice and information, anyone can make investments that are beneficial to their overall financial situation. Even making small investments at first can lead to the ability to make larger investments down the road and, in our opinion, is something that people should consider earlier in life than later. Below, we have listed a few of the reasons that making solid investments is so important.

Retirement Savings

We think that we can all agree on the fact that no one wants to work for the entirety of their life. While having a job and working that job brings allows a person to feel a sense of satisfaction and accomplishment, most people have an age in mind where they would like to cease working and enjoy the fruits of their labor. Most people who have been in the workforce for any amount of time have some sort of retirement account set up. Most often, people place money into a 401k plan in order to save money while avoiding excessive taxation and these plans are one of the main ways that people save for retirement. Making your own investments, however, can go a long way in supplementing your current retirement savings.

Beating Inflation

Everyone has heard stories of a person passing away and leaving behind a mattress full of money. While the validity of these stories can be called into question, they still represent an idea that squirreling away money is in a person’s best interest. Unfortunately, if a person only saves their money and does nothing with it, they are not doing all that they can to make sure that their money is doing as much for them as it possibly can. As the years pass, inflation always rises. Fifty years ago, $1,000 dollars carried more weight than it does in today’s economic climate. For this reason, placing your money in investment vehicles, such as stocks, mutual funds, and bonds, is a great way to ensure that your money will actually be worth more down the road. Investing a few thousand dollars today could mean that a person has tens of thousands of dollars to work with in the future.

Make Your Money Make You Money

When you look at investment in a broad sense, the whole idea is to make your money make you money. Traditionally, people have to work to make money. Labor translates into a monetary compensation and, for the most part, this is where the majority of a person’s net worth comes from. However, at a certain point, a person needs to look for ways that they can use their money to generate additional income without having to increase the amount of labor that they must do. For example, our owner builder loans, when used as an investment strategy, net our investors a fixed return rate of 10 percent over a 12-month period. Considering the loan sizes that we typically provide to people who want to build their own home, this rate of investment can mean some serious cash.

Thank you for taking the time to read our short post on the importance of investment. If you would like to learn more about our owner builder loans and how you can use them as investment tools, please contact us today by giving us a call or visiting our website. We will work with you to find an investment strategy that works and, because our loans are protected by our equity, you can rest assured that your investment is secure. Contact us today and let us help you put your money to work.