Basically investing means putting your money to work for you. Most of us are taught that you can earn an income only by getting a job and working. This is what most people do. The problem with this, is that if you want more money, you have to work more hours. However, there is a limit to how many hours a day you can work. You can’t create a duplicate of yourself to increase your working time but you can use your money to work for you while you continue working for your company or just doing nothing. Making money work for you maximizes your earning potential whether or not you receive a salary rise, work overtime or look for a higher paying job.

There are different ways you can make an investment. These includes and not limited to stocks, bonds, mutual funds or real estate or even starting your own business. Note that, investing is not gambling. Gambling is putting money at risk by betting on an uncertain outcome with the hope that you might win money. True investing happens with some actions on your part. You need to perform thorough analysis and commit capital only when there is a reasonable expectation of profit even though there is still a risk and there is no guarantee that you will get a profit when you invest.

People invest because they want to increase their personal freedom, security and the ability to afford things they want in life. Besides nowadays the responsibility of planning for retirement is shifting away from the state and towards the individual hence the need for investment on your part.