Invest (n-vest): to put (money) to use, by purchase or expenditure, in something offering potential profitable returns, as interest, income, or appreciation in value.
Investing means letting your money go to work for you. Essentially, it’s a different way to think about how to make money. Instead of you working for the money, let your money work for you. If your money isn’t working then it is “lazy money” and it’s time to give it a job by investing. Making your money work for you maximizes your earning potential.
There are many different ways you can go about making an investment. This includes putting money into stocks, bonds, mutual funds, annuities, or real estate (among many other things). These are referred to as “investment vehicles”. Each of these vehicles has positives and negatives. Choosing the right vehicle or combination of vehicles will vary from person to person. The goal remains the same, and that is to get your money working for you.
True investing doesn’t happen without some action on your part. An investor should perform their due diligence and only invest his or her money when there is a reasonable expectation of financial gain. Yes, there still is risk, and there are no guarantees, but investing isn’t so scary when you choose the right vehicles to meet your personal tolerance for risk and time.
It’s pretty easy to understand that people invest because they want to increase their personal freedom, sense of security and ability to afford the things they want in life. However, investing is becoming more of a necessity. The days of working the same job for 30 years and retiring to a nice pension are gone for the majority of Americans. For average people, investing is not so much a helpful tool as the only way they can retire and maintain their present lifestyle.