Investing 101: What Is Investing?

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Investing 101: What Is Investing?
Legendary investor Warren Buffett defines investing as “… the process of laying out money now to receive more money in the future.” The goal
of investing is to put your money to work in one or more types of investment vehicles in the hopes of growing your money over time.
Understanding how different types of investment vehicles work is critical to your success.
There are many different ways you can go about investing, including putting money into stocks, bonds, mutual
funds, ETFs, real estate (and other alternative investment vehicles), or even starting your own business.
Investing is a way to set aside money while you are busy with life and have
that money work for you so that you can fully reap the rewards of your labor in the future.
While it is true there are no guarantees of making money, some work on your part can increase your odds of being a successful investor.
Investing is really about “working smarter and not harder.” Most of us work hard at our jobs, whether for a company or our own business.
We often work long hours, which requires sacrifice and adds stress.
These are all questions that should be answered before making an investment.
Taking some of our hard-earned money and investing for our future needs is a way to make the most of what we earn.
Every investment vehicle has its positives and negatives, which we’ll discuss in a later section of this tutorial.


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