From investment and went the expression that money ‘must work‘. In other words, the money that you have safely invested in stocks. And since this money generates income, they are called workers. To make it even clearer, the money you earn for yourself, and you do nothing.
Why did people start investing in stocks?
It all started with the fact that over time, money began to devalue. The sharp depreciation of money is very noticeable in 2008 and 2014. And the investment is protected from such a sudden turn of events.
- Investments include both risk and return. But beyond that, there are other concepts of investment, such as liquidity and capital intensity. I will tell you about each of them separately.
- What is capital intensity? This is the amount of capital that is taken in the production of a commodity in relation to its value and in relation to other factors of production.
- What is liquidity? This is done as quickly as possible and more investment without loss of income .Mining is also included in liquidity.
A little bit about the risk
Over time, the risk can only increase, take as an example a certain situation: buying a property in a crisis is dangerous, as a construction company can go bankrupt, and waiting for this unfinished building to be bought out will take a long time.
But the answer to the main question, what is an investment, should be the answer: investing money in objects. And this investment brings a significant profit.
So what are investments for? For the formation of independence and financial stability. With the money you received from the investment, you can meet the need you only want.
Conclusion I can make :
Saving money that will eventually devalue is everyone’s business. But I would prefer to invest money in investments, while receiving more income than from money that gradually depreciated.
Therefore, make the right conclusions and let your life be easier, simpler and more pleasant.