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Which assets can be counted as investments?

An investment is an asset. The intention behind investment is building wealth over time. The investment appreciates or rises in value over time. When the total value of an investment (asset) grows, it is called an appreciation. 

Think, an individual buys a good. Here, the goal is not to consume the good. The good will be used to create wealth in the future. For instance, you buy a house and its value appreciates in a few years. Now this is an investment.

People can invest their time, effort, money or an asset so that they receive a bigger payoff in the upcoming future.

Investment is simple words

  • An investment demands you to put your capital today; time, effort, money, asset, to create larger gains tomorrow.
  • The payoff of an investment should always be greater than what was put in.
  • There are multiple mechanisms or mediums for investment. These days, apps have came out which allows you to buy stocks, mutual funds, bitcoin and other cryptocurrencies, etc. These are all investments. 

Why should I invest?

Investments are the best for retirement. If your savings are in the bank account, its value will diminish over time.

On the other hand, investment requires you to make money from your money. In other words, money is working for you to create wealth. When you’re investing, you’re giving money to some entity or individual. This money can be used to grow the business, starting new projects and maintaining day-to-day revenue generation. Moreover, you will beat inflation and it’s the easiest path to become wealthy.

Investments Advice, Retirement Plans – Stocks, bonds & Investing & Saving

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