Hi there,
Let’s see what happens when you invest or when you don’t invest your money.
Let’s understand it by an example.
Rahul got 1000 Rs cash prize, and he invested that to earn some decent returns of 10% in a year. (10% returns - 7% inflation = 3% returns) Total he had 1030 after one year.
Suresh also got the same 1000R cash prize, and he didn’t invest and kept that for one year and now with growing inflation of about 6–7% that 1000 turns to 930 Rs.
The overall difference is 100 Rs which is 10% in Rahul and Suresh.
Now suppose the money was ten lakhs then Rahul had 1 lakh more than Suresh.
Hence wise investment is always chosen to be the best option to grow wealth and value of your money.