Mauricio Junior
What is investing?
Do you really know what is investing?
What is investing?
Investing is the act of putting your money into something today with the expectation that it will grow and be worth more in the future.
Instead of letting your money sit idle, you use it to buy assets that can increase in value or generate income over time.
Simple Example
- If you keep $1,000 in cash, it stays $1,000.
- If you invest $1,000 in a company like Apple or in an index fund like S&P 500, it could grow over the years.
Common Types of Investments
- Stocks – Buying shares of companies.
- Bonds – Lending money to governments or companies and earning interest.
- Real Estate – Buying property to rent or sell later.
- ETFs (Exchange-Traded Funds) – Funds that hold many stocks or bonds (like S&P 500 funds).
- Cryptocurrency – Digital assets like Bitcoin.
Why People Invest
- Build wealth over time
- Beat inflation
- Save for retirement
- Generate passive income
- Achieve financial freedom
Important Concept: Risk vs. Return
Generally:
- Higher potential return = Higher risk
- Lower risk = Lower potential return
For example:
- Investing in Bitcoin is usually riskier than investing in a broad index like the S&P 500.
In One Sentence
Investing is using money as a tool to make more money over time.
Calculate
You can calculate how much you will have if you invest a little a month base on time and your age using this link easy2invest.org / calculate
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