In light of the above event, let’s explain the need and importance of having these IAPs. In our daily financial transactions, we deal with “money”. It affects every aspect of our life. It is a liquid asset that allows us to settle our daily transactions and obtain what we need to live. There are two ways to manage our income: either to maintain what we have or to grow it. As money does not grow on trees, we have to work hard, engage in various economic activities and earn money to make our present/future life comfortable. Clearly, effective income management is vital to our financial well-being. Therefore, to achieve goals in life and secure a financial future, it becomes absolutely imperative to manage hard-earned money prudently to make wise financial decisions and achieve financial security. It is an accepted fact that income can only increase when people save and invest wisely. No matter how much income we have, the important thing is to educate ourselves on the basics of saving, investing, and available investment opportunities. No one can guarantee that people will quickly profit from the investments they make. But if they get the facts about saving and investing and follow a smart plan, they should be able to build financial security over the years and reap the benefits of managing their income (https://www.investor.gov). Once an individual has set a monthly savings goal, it is time to invest. When he invests his savings, they grow and bring him more income in return. As the life of a human being is full of uncertainties, it is essential to save on current gains to safeguard the future. However, simply saving income and keeping it idle makes no sense, as the purchasing power of income depreciates over time. Therefore, the income saved must be properly invested in order for its value to be appreciated. As an investor, shaping the financial future is as important as many other roles we play in life. Today, we have more earning potential and more influence over financial decisions than ever before. As such, equipping us with the right kind of knowledge about the pros and cons of various investment avenues like keeping money in savings bank accounts, fixed deposits, buying gold, silver and other precious metals or investing in real estate, can bring us good returns. overtime. It can be said that an individual’s ability to bear risk is different depending on their age, income, perceptions and beliefs. Remember, investing smartly can also help our profits outpace inflation and increase in value.
An important investment option available in the market is to channel our savings for productive purposes by investing them in the securities market. Securities such as stocks, bonds, debentures, mutual funds and other financial products are issued to raise funds. The primary function of securities markets is to assist in the transfer of excess resources to others who have a productive need for them. Companies, financial institutions and government institutions raise capital to finance their operations by selling securities to investors who, in turn, take on some risk in the hope of earning a return on their investment.