Filipino Abroad Remittance Corner: Learn the Definition of Investment Easily

Learn the Definition of Investment Easily

There are two basic forms to identify the correct and easy understanding of what an investment is. Below are the two form:

1. Investment can be the purchase of goods, supplies, tools, or equipment to use in the production of increasing profits.  For example, a businessperson who produces shoes may purchase a machine that automatically stitches leather in the hopes that the time saved will allow for the production of more shoes and increased sale

2. Investment can take is what most of us think of when we say we are investing our money.  That is, we use the money we have for the specific purpose of making more money from i.   

Different ways of Investing Money

a.Stocks and bonds
b.Exchanging currencies in the Forex market
d.Certificates of deposit
e.Mutual funds
f.Buying real estate
h.Simple savings accounts

It is sad to say that the riskier the venture is, the more opportunity there is to make a higher profit. On the other hand, the less risky, the lower the proceeds.  The FDIC guarantees savings accounts and therefore, putting your money in a savings account with the idea that you will get a fantastic return on your money is not very realistic

A savings account has little to no risk whatsoever; therefore, the return on investment is weak.  Of course, it’s always a good idea to have liquid assets, and a savings account is one way to do so.  Most middle-class Americans should have enough in their regular savings account to tide them over in the event of an emergency or job loss

Purchasing stock in a company makes you part owner of that company.  The two ways to make money from owning stock are to secure dividends and/or sell the stock for a higher price than what you paid for it.  Sounds simple, right?  Well, the basic concept is quite simple; it’s the day-to-day reality of the stock market that makes this type of investment a bit more complicated.  There is no guarantee whatsoever that the stock you choose will make a profit.  In fact, you can easily lose your entire investment.  The potential for a tremendous profit exists, however, if the stock (company) hits the big time

If you really want to make money, you need to decide which investment method that you are going to follow, the former method or the latter one. It is your choice depending on the risk but the result will be a successful effort or the opposite of what you would experience. To start investing your money and other resources and you are ready enough to venture this return on investment or ROI method, find a professional investment agency and give you a solid guide to start making yourself some money.
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