Investing Basics and Spending Money

Investing Decisions

What motivates a person to invest, rather than spending his money immediately?

The most common answer is savings – the desire to pass money from the present into the future.

People anticipate future cash needs, and expect that their earnings in the future will not meet those needs. Another motivation is the desire to increase wealth, i.e. make money grow.

Sometimes, the desire to become wealthy in the future can make you willing to take big risks.

The purchase of a lottery ticket, for instance only increases the probability of becoming very wealthy, but sometimes a small chance at a big payoff, even if it costs a dollar or two, is better than none at all!

When you invest, you are increasing your income and building the value of your assets!

It’s never too soon to start thinking about investing. Investing means putting your money to work earning more money. Done wisely, it can help you meet your financial goals.

You don’t have to be wealthy to be an investor. Investing even a small amount can produce considerable rewards over the long term, especially if you do it regularly.

Investing means you have to make decisions about how much you want to invest and where to invest it.

To choose wisely, you need to know what choices you have and what risks you take when you invest in different ways.

If you want to invest, you have a wealth of opportunities. Selecting the best investment depends on your financial goals and general market conditions.

investing basics

The right investment is a balance of three things:

1. Liquidity – How accessible is your money?

2. Safety – What’s the risk involved? and

3. Return – What can you get back on your investment.

You can find many things to invest in, but the basic three:

Stocks, bonds and cash should be the core of any investment portfolio!