I can’t remember the first time I heard about investing, but I do remember getting very interested in it in high school. It was intriguing. I didn’t know much about it, but I did know that it was a way to make money without having to get a job.
What does it Mean to Invest?
To invest means to take money you already have and use it in such a way that you’ll get the money back and then some. Of course, this is a very simplified description, but if you’re completely knew to the topic, starting simple is important.
When you invest, you are trying to make your money grow. It really puts “it takes money to make money” into perspective. A little bit of math will tell you that the more money you invest, the more money you’ll make in the long. This doesn’t mean you can’t start small.
Why you Should Invest
The simple reason is to make money, but what do you need that money for? Most investors don’t invest to have money for everyday spending. If they spent the money they made every time they got it, they’d never be able to take advantage of exponential growth. Exponential growth comes when you invest the money you made from previous investments over and over.
You should invest for your future. Whether a future expense is 5 years away or 30 years away, investing will help you save the money you need for those goals. Goals that you otherwise could never afford with your typical salary suddenly become in reach when you invest. Such goals may include:
- Sending the kids to college
- Going to college yourself
- Taking a dream vacation
- Buying a brand new car
- Owning a vacation home
- Upgrading your Wardrobe
Before you start investing, you need to start learning. You can start by learning more about the basics of investing. If you’re at all confused now, reading lots of books and websites will help clear things up for you.
I suggest starting with the basics of investing in general. There are so many individual areas to go into, but start with the big picture. As you progress, you can start learning more about individual investments such as stocks, bonds, or real estate.
You’ve taken the first step to completing financial goals you probably never thought you could achieve. Now those things have the potential for reality. All you need to do is get started.