What IS Investing?

For some, the concept of Investment makes their heads spin. Investing is done by men in suits, who live fast, drive nice cars and have an affinity for risk.

While this particular stereotype isn't 100% inaccurate, it falls well short of defining investing.

Have you ever heard the expression, 'make your money work for you?' Well, that's investing.

Let me paint you a picture.

Investment is the process of taking your money or capital and investing it in order to gain profitable returns, in the form of income, interest or appreciation of value. The best part about all of that? Anyone can do it!

Many believe that in order to obtain money we must work a job. That's how we were all raised. Working with that logic, the only way to acquire more money would be to work harder and longer. Possibly secure a second or third job, right? What a nightmare!

Naturally it isn't reasonable for most of us to assume the responsibility or workload that performing three or more jobs would require. So how then, without increasing our output are we expecting to increase our income? This is where in order to achieve such financial goals; we send someone (or something,) out to work hard for us and to earn additional revenue on our behalf.

Investing is the act of literally 'making your money work for you.'

While you maintain your day job, drive your kids to school, take your girlfriend to the movies or stay in and read a book, your money heads out to its job - be it in real estate, stocks, bonds or even mutual funds - and works around the clock to earn you an additional stream of revenue without your having to lift a finger.

Investing almost always carries with it some risk though, right? So why is it that this current generation are becoming more and more interested in investing and increasing their nest egg? Once upon a time it was entirely possible to live off the salary you bought home from work. Are people just greedier now than they once were?

While it may seem that way sometimes, the act of investing and allowing your money to work for you is increasing in popularity through necessity more than indulgence. As the world goes through a Global Financial Crisis the future has never been more uncertain and the average Joe has come to realise that, unless they act now and begin nurturing their nest eggs, retirement may not be as glamorous as they had once envisioned.

Investing no longer belongs exclusively to the men in the nice suits with the fancy cars. Men and women around the world are embracing Investment as way of life. Many are now looking for reliable, creative ways to ensure their future and that of their families while simultaneously enjoying the now, not being forced to work themselves silly.

Smart, well-researched investment decisions can make this new dream a reality.