Investing is the act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit. It is how you make your money grow for long term financial goal and a way of saving your money for something further ahead in the future.
Investment means introducing risk to your money. Increased risk can help you grow your cash, however, there is the possibility that you could lose some, or all, of your money.
What do people invest in?
- stocks
- bonds
- mutual funds
- real estate
- starting businesses
Investing is not gambling. Gambling is putting money at risk by betting on an uncertain outcome with the hope that you might win money. However investing requires substantial research and analysis, determining the risk and return associated with the investment and it does not depend on luck as the investor will genuinely believe there is a reasonable expectation of profit