What is investing and why is it important?
- It’s long-term: You usually want to use money you don’t need now for goals many years ahead.
- It uses money now with expectation of making money in the future: With investing, you have to spend money to make money. You do this with the expectation of getting profit.
- It has risk factors: Investing is very different from saving. Unlike most savings accounts, investments are not insured and there is no guarantee that you will make a profit. However, trends show that your money almost always grows if you diversify, use your money wisely, and invest for the long term.