When I was a child, my parents gave me a dollar a day. I can use it on anything that I want with the advice to always safe some in my piggy bank. As I grew into adulthood and started working, saving money no longer means putting my cash in a plastic container. I put my money in the bank. Saving money has been a good habit and idea for rainy days, but as I discover the meaning of investing money, it has definitely become the greater idea now.
What does it mean by investing money?
Investing money means putting your money to work for you. Essentially, it is another way of making money. Most of us were taught since young to get a good job and always work hard. We learned that working hard will earn us a steady income. And that is exactly what most of us are doing. However, there is one big problem with this get-a-job-and-work-hard concept. If you want more money, you would have to work more hours. Unfortunately, there is a limit to how many hours a day we can work, and all work with no play makes anyone a dull person. Working 24 hours a day with no leisure time to enjoy what you earned is quite pointless.
We know we cannot be duplicated to increase our working hours, this where investing money comes in as an extension of you; you put your money to work. In this way, while you are working for your employer, mowing your lawn, sleeping, reading the paper or socializing with friends, you can also be earning money elsewhere. Quite simply, making your money work for you maximizes your earning potential whether or not you receive a raise, decide to work overtime or look for a higher-paying job.
How to invest your money?
There are many different ways in which you can go about making an investment. This includes putting money in stocks, bonds, mutual funds, real estate, and etcetera. Some even start their own business. There are people, who refer these options as investment vehicles, which are just another way of saying "a way to invest." Each of these vehicles has its own positive and negative points, which we'll discuss in a later section of this tutorial.
The point is, no matter which method you choose to invest your money, the goal is always to put your money to work so it earns you an additional profit. Let us watch this video for a full understanding to investing money.