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In simple terms, what is investment?


In simple terms, what is investment?

This is the main question you need to ask yourself before you make the right choice and become an investor.

Investment is the placement of a resource for the purpose of making a profit. In particular, money to get even more money.

Any resource can be spent, saved or invested; create turnover. All three options are good, there is no bad thing, you don’t have to become Scrooge to languish over every dollar. Spending is not bad in and of itself. And if everything is relatively clear with spending. That with savings there is a big drawback. Money, like all other resources, in fact, cannot be simply saved, it is gradually “eaten up" by inflation and other factors. This is easy to see if you remember how much a fare or a loaf of bread cost 10 years ago. In our city, prices were almost 3 times lower than today. The main advantage of investments is that they provide an opportunity to make a profit regardless of your work. In other words, investments, a way to receive passive income, when your resources bring you more resources, saving your time and energy. So what about investments?

Let’s divide the investment into several options:

a) investment in knowledge and experience, when the acquired knowledge and experience helps you improve the quality of life

b) in patents, licenses, technologies and copyrights

c) real estate, apartments and garages for the purpose of further leasing or resale at a premium

d) in currency, which may not be an investment, but savings (piggy bank)

e) bank deposit, why not

f) purchase of the business

g) investment in goods, such as precious metals

h) investing in securities such as bonds, stocks, futures, funds

And much more…

Convinced? Become an investor. Just do not forget, the most important disadvantage in investment. It is that they always carry risks. Investments do not guarantee income, but enable resources to work. There are no risk-free investments. There are bad investments where the risk of return is low and losses are high. There are those with low risk, but as a rule, there is a small income, and high-risk investments, for which the possible income is higher. And this is not a game, but experience and knowledge.

Post source: zen.yandex.ru

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