What is an investment and why is it so important for you?

What is an investment and why is it so important for you?
Author: Mr.RandyPublish Date: Fri, 10 Jun 2022 01:25 PM (IST)Updated Date: Tue, 30 Jun 2022 7:35 AM (IST)
What Is Investment and Why It Is So Necessary For You, Know in Detail

Investment is the process of applying your earned income to an asset or option that is expected to generate an increase in your money over time, with the help of its own characteristics of that particular asset or option.

Almost Every day you will get such phone calls in which someone advises you to invest money in such schemes where you can get good profit in the coming time. At the same time, you must have also been a part of the debate of earnings and losses in the stock market many times. On all these occasions, you must have come across one word again and again that is investment or investment. The special thing is that even after being so common in people's life, very few people have the real understanding of this magic word. Not only you, every day governments, banks and billionaires around the world get confused with this word, because they all know that one's future depends on how seriously he has shown investment in the present.

What is input?

Suppose you work and have an account in State Bank of India and also you have bought some gold ornaments. Now tell me if it happens that after completing your shift, you go to work in State Bank of India for some time because you hope that this will increase the amount kept in your account and will you work with any jeweler after that? So that your gold becomes a little more valuable. No, it doesn't happen. At the same time, the prices of gold kept in your locker are also changing. And all this happens when maybe you are not doing anything. That's what investment is. That is, the process of investing the income from your earnings in such an asset or option, in which with the help of its own characteristics of that particular asset or option, it is expected to increase your money over time, is called investment. In simple words, investment is the way in which you are entitled to get extra money without labor on the basis of timely decision on your money.

Why input is necessary?

Let us ask you two questions... First will your expenses increase in future. Surely almost everyone will answer yes to this. If inflation increases or if the family increases, then expenses will also increase. Now the second question, will your earnings or income also increase according to your expenses in future. Hardly anyone will have the answer. Pandemic, economic slowdown, sharp rise in inflation, aging are many factors due to which uncertainty about income remains. This is the reason why in the coming time, to meet your expenses, achieve your goal and even your dreams, you need such a source of income, which can make you financially strong on its own strength. Investing money at the right time in such assets or options that keep you growing money on their own, plays a vital role in ensuring a better future. Most importantly, they keep working even when you are in a position to leave your job like retirement etc.

Does every investment make money?

It is important to note that investments are made in the expectation of additional income. But in reality you can also suffer loss. Actually investing is a very thoughtful process. Which should be taken very seriously. A small amount invested in the right place at the right time can give you very high returns. However, wrong decisions can also sink your entire capital. Provides investors with all the necessary information so that they can take the right investment decision and see their earnings grow further over time.

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