Thursday, October 7, 2010

What is Investing

Investing is how you make your money grow, or appreciate for long term financial goals. It is a way of saving your money for something further ahead in the future.

Saving is a plan to set aside a certain amount of your earned income over a short period of time in order to be able to accomplish a short term goal. It is a plan of action where you plan on acquiring a certain amount of money by redirecting some of the money you have received from your various sources of income.

Investing, on the other hand, is a much longer term activity. We consider investing as an action that is based on long term goals and is primarily accomplished by having your money make more money for you.

Many people realise the importance of saving but have reservations about investing. Investing is often regarded as "gambling"; "too risky"; "only for the rich";"only for those about to retire"; too complicated"; "not necessary". While misleading, such reservation also deter us from investing. We then forgot the opportunity of growing our savings. If you are in this situation, we will address some of your concerns and questions you may have about investing.

Reference: MAA Financial Planners SG, DFI Kidspace

No comments:

Post a Comment