What is Investment and Why do we need it.

Investment

What Is Investment?

   An investment is a process to achieve the goal of generating income. In very simple language, an investment means to purchase or buy the goods that are not consumed today but are used in the future to create wealth. Anything you buy today and sell it in the future at the higher price for profit, that's called investment. Or any activity used for generating future income is an investment.

Why we need to do Investment.

   Everyone has their own goal in their life for example ( buying a house, car, bike, holiday, etc ) to achieve their goal they have to spend their salary or their saving. What if, they have some other option rather than spending their salary or saving. There are only two ways to earn money in the world, the first is by working, for yourself ( Business or self-employed ) or working for someone else ( Job ) and the second is by having your assets work for you ( investment ). 70% of the population on the planet is not eligible to directly afford these expenses and only 30% of the population is eligible to afford anything. No matter how you do it. Whether you invest your money in different investment programs like stocks, bonds, real estate, FD, small business, etc or you put your money in the different fund management system, the objective/goal is the same to generate additional income.
   So, Investment is a very simple process which doesn't let you lose your job but help you to earn some additional income. In the next post, we will discuss different types of investment program and how to do it.

Hindi video

Books on Investment.