An investment is an asset or item acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time. When an individual purchases a good as an investment, the intent is not to consume the good but rather to use it in the future to create wealth.
An investment involves putting capital to use today in order to increase its value over time.
An investment requires putting capital to work, in the form of time, money, effort, etc., in hopes of a greater payoff in the future than what was originally put in.
An investment can refer to any medium or mechanism used for generating future income, including bonds, stocks, real estate property, or alternative investments.
Investments usually do not come with guarantees of appreciation; it is possible to end up with less money than with what you started.
We invest so that we could:
Grow your money when you start investing.
Start investing to beat inflation.
Achieve financial goals and spend on those you love.
Achieve financial independence and retire comfortably.