To invest money simply means making money on your original investment as well as on the gains made in following years . In short, as your money makes money, so it should make more, a relatively simple concept that, over time, is hugely beneficial.If you leave your investment for a long period of time, the investment not only grows each year, but grows exponentially. This interest is called compound interest, and is the key to long-term growth and wealth.If you want a shot at becoming wealthy, you need to do more than simply earn money. Most importantly, you need to hold onto the money you earn. And then, you need to grow your money. In order to grow your money, you need to learn how to invest. When you become an investor, you’ll be using your money to acquire things that offer the potential for profitable returns through one or more of the following: Interest and dividends from savings or dividend-paying stocks and bonds Cash flow from businesses or real estate Appreciation of value from a stock portfolio, real estate, or other assets As you learn to become an investor, you will begin to devote your limited resources to the things with the largest potential for returns. That may be paying down debt, going back to school, or fixing up a two-family house.Of course, it may also mean buying stocks and bonds, or at least mutual funds or exchange-traded funds. Thanks to advances in technology, you can start to invest with as little as $5 a month and a smartphone. It’s our job to help you filter out the noise, learn the basics, and make good investment decisions from the start
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To invest money is to put money into business activities to earn interest over time. The amount of money investors put out is known as the principal. The principal amount and interests can be withdrawn upon maturity or reinvested. Interests are calculated on a daily, weekly, monthly or annual rates as agreed by both investors and borrowers.
There are many ways one can invest his money. Some of which include purchases of shares, bonds, treasury bills. Others are in the form of business start up capitals or provision of goods and services for a return on Investment.
Withdrawal of interests on shares for example depends on the agreement on a daily rate or upon maturity. Investing money is also taking risks and investors are capable of judging their future returns to be profitable based on company performance and outlook.
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