Investing is a good habit and we all should do it because this is the method that we can follow to grow our wealth and also to build wealth. We earn money which is a necessity but it does not grow unless we invest in the right instrument. Inflation is already part of the money and it applies to every country so no matter what country you are from your money has to deal with inflation. Inflation indeed varies from different countries but it is everywhere so there is no way that we can say that harmony is safe from inflation.
The currency value reduces because of inflation and if this percentage is about 5% for example then noninvesting means your money will reduce its value by five percent with each passing year. Now it becomes a necessity for you to invest the money in the right instrument that can not just cover the inflation reduction but also grow it so that it gets more value this way. Some people invest in the stock market which I think is a good strategy but keeping the portfolio diversified is equally important.
Some companies pay dividends to their shareholders and with certain parameters, we can easily identify some of the companies paying better dividends. I have read some of the articles about stocks and how to make the most out of them for the long term. I believe that the investment in such dividend-paying stocks can be a good idea and also it can be considered for retirement but the portfolio should be carrying a decent amount.
Every individual can have a different funds requirement at a certain age so considering that we need to plan things accordingly and then some part of the investment can be done on dividend-paying stocks for retirement. I am not very active in these stocks investing but trying to put more time into this and of course money but all this is going to be for the long term. As of now, I have also not decided which companies I will be shortlisting but hopefully, I will be able to figure out some good companies to invest in for the long-term strategy.
Thank you