Income

• You should invest money because of the income potential. When you invest, you exchange a certain sum of money with the hope of getting a larger sum in return. Whatever amount you invest, you do so to earn interest or receive a payment from the investment's growth. The amount you receive above your original investment is income in your pocket. Many financial investments such as stocks, bonds, mutual funds and exchange traded funds pay dividends on a monthly, quarterly, semi-annual or annual basis. These dividends are payments from the growth of the securities. Likewise, real estate investors buy and hold rental properties and collect rental payments above the home's mortgage. Real estate investors also make money when they buy or sell a piece of property.
  
  

Retirement

• You should invest money to save for your retirement. Security investments are ideal for retirement investing. Many consumers invest in an IRA or an employer-sponsored 401(k) plan to put money away for retirement. When you put money in a retirement account, the account acts as a vessel to house specific investments such as mutual funds and individual stocks. Depending on how close you are to retirement, your investment accounts may range from very aggressive to very conservative. The further you are from retirement, the more risk you can take with your investments. Conversely, the closer you are to retirement, the more conservative you want to be to preserve your principal investment.
  
  

Tax Benefits

• You should invest your money to take advantage of the tax benefits. For example, real estate investors can depreciate their investment properties. Depreciation is an estimated loss for wear and tear to the property. Additionally, retirement investments are tax deferred, meaning the growth of the investment is not taxed until money is withdrawn. This is beneficial for investors in a higher tax bracket. When the investor retires, he will most likely be in a lower tax bracket, and the income of the securities will be taxed at a much lower rate.
  
  

Considerations

• If you ever considered investing but were hesitant because of the risks involved, it's important to understand that there are a variety of investments available based on your personal risk comfort zone and financial goals. Investing is not limited to the stock market, although the stock market is an effective investment tool. Many investors utilize the real estate market to invest money, while others invest in start-up companies or established businesses. Additionally, some investors donate to charitable organizations to take advantage of tax benefits. Because of the wide assortment of options, it's important to choose an investment based on your interests and risk level, and to get as much information as you can about the investment beforehand to avoid remorseful investment decisions.