Investment means the act of putting money, effort, time or the like, into something to make a profit or get an advantage. Simply put, investment is an act of doing something today with the hope of getting something better at a later date. In finance, an investment is the purchase of an asset today with the hope that it will provide regular income or appreciate in value in the future.
Every individual divides his/her income in two broad parts:
These saved funds usually lie idle either in a bank account or as cash at home. Also, many people who live from paycheck-to-paycheck find it difficult to save funds from their current incomes. Nevertheless, they want to be prepared for future expenses too! In both the scenarios, the desire to see the money grow over time and help manage costs later in life is deep rooted. This is where investment steps in.
People who either save or cut costs to ensure a better future, look to part with their funds temporarily by ‘investing’ them in options that offer returns on their investments.
Remember: When you invest, you are buying a day that you don’t have to work. – Aya Laraya