What is an Investment

What investing means

One of the reasons many people fail, even very woefully, in the game of investing is that they play it without understanding the rules that regulate it. It is an obvious truth that you cannot win a game if you violate its rules. However, you must know the rules before you will be able to avoid violating them. Another reason people fail in investing is that they play the game without understanding what it is all about. This is why it is important to unmask the meaning of the term, 'investment'. What is an investment? An investment is an income-generating valuable. It is very important that you take note of every word in the definition because they are important in understanding the real meaning of investment.

Principal investing

From the definition above, there are two key features of an investment. Every possession, belonging or property (of yours) must satisfy both conditions before it can qualify to become (or be called) an investment. Otherwise, it will be something other than an investment. The first feature of an investment is that it is a valuable - something that is very useful or important. Hence, any possession, belonging or property (of yours) that has no value is not, and cannot be, an investment. By the standard of this definition, a worthless, useless or insignificant possession, belonging or property is not an investment. Every investment has value that can be quantified monetarily. In other words, every investment has a monetary worth.

An investment must be generating income

The second feature of an investment is that, in addition to being a valuable, it must be income-generating. This means that it must be able to make money for the owner, or at least, help the owner in the money-making process. Every investment has wealth-creating capacity, obligation, responsibility and function. This is an inalienable feature of an investment. Any possession, belonging or property that cannot generate income for the owner, or at least help the owner in generating income, is not, and cannot be, an investment, irrespective of how valuable or precious it may be. In addition, any belonging that cannot play any of these financial roles is not an investment, irrespective of how expensive or costly it may be.

There is another feature of an investment that is very closely related to the second feature described above which you should be very mindful of. This will also help you realize if a valuable is an investment or not. An investment that does not generate money in the strict sense, or help in generating income, saves money. Such an investment saves the owner from some expenses he would have been making in its absence, though it may lack the capacity to attract some money to the pocket of the investor. By so doing, the investment generates money for the owner, though not in the strict sense. In other words, the investment still performs a wealth-creating function for the owner/investor.

investing advisor

An Investment must generate income

As a rule, every valuable, in addition to being something that is very useful and important, must have the capacity to generate income for the owner, or save money for him, before it can qualify to be called an investment. It is very important to emphasize the second feature of an investment (i.e. an investment as being income-generating). The reason for this claim is that most people consider only the first feature in their judgments on what constitutes an investment. They understand an investment simply as a valuable, even if the valuable is income-devouring. Such a misconception usually has serious long-term financial consequences. Such people often make costly financial mistakes that cost them fortunes in life.

Perhaps, one of the causes of this misconception is that it is acceptable in the academic world. In financial studies in conventional educational institutions and academic publications, investments - otherwise called assets - refer to valuables or properties. This is why business organizations regard all their valuables and properties as their assets, even if they do not generate any income for them. This notion of investment is unacceptable among financially literate people because it is not only incorrect, but also misleading and deceptive. This is why some organizations ignorantly consider their liabilities as their assets. This is also why some people also consider their liabilities as their assets/investments.

It is a pity that many people, especially financially ignorant people, consider valuables that consume their incomes, but do not generate any income for them, as investments. Such people record their income-consuming valuables on the list of their investments. People who do so are financial illiterates. This is why they have no future in their finances. What financially literate people describe as income-consuming valuables are considered as investments by financial illiterates. This shows a difference in perception, reasoning and mindset between financially literate people and financially illiterate and ignorant people. This is why financially literate people have future in their finances while financial illiterates do not.

How much can it generate for you

From the definition above, the first thing you should consider in investing is, "How valuable is what you want to acquire with your money as an investment?" The higher the value, all things being equal, the better the investment (though the higher the cost of the acquisition will likely be). The second factor is, "How much can it generate for you?" If it is a valuable but non income-generating, then it is not (and cannot be) an investment, needless to say that it cannot be income-generating if it is not a valuable. Hence, if you cannot answer both questions in the affirmative, then what you are doing cannot be investing and what you are acquiring cannot be an investment. At best, you may be acquiring a liability.

Eugene C. Onyibo is a motivational speaker, trainer, business coach, personal financial management expert, entrepreneur, philosopher and prolific writer. He is the publisher of Inspiration Express ( [http://inspirationexpress.com.ng] ), an online inspirational magazine. He is also the author of The Secrets of Successful Investors: Guides To Investing ( https://www.amazon.com/dp/B01AW5M7J4 ), a best-selling inspirational publication that has helped numerous workers (employers/entrepreneurs and employees) across the globe. Eugene C. Onyibo (a wildly traveled, and also a much sought after, speaker at seminars, workshops, conferences, etc) is also a consultant of private and public organisations.

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Faqs related to Investing

Who invests in startups

Startup investors can come from a variety of backgrounds, including venture capitalists, angel investors, and family offices. Normally these investors are looking for high potential opportunities with good prospects for growth. They may also be willing to take on a bit more risk than traditional stock or bond investments in order to achieve their investment goals.

There are many different types of startup investing available, so it is important to do your research before making any decisions. Some common strategies include seed funding (investing early in the company's development), follow-on funding (providing additional capital after the initial round of financing has been raised), and syndication (selling shares in the company to other investor groups).

No matter what type of startup investing you choose, make sure that you understand all of the risks involved and seek out qualified financial advice if needed.

What investing means

Investing typically refers to the act of investing your money in a financial instrument, such as stocks, bonds, or mutual funds. By buying these assets, you are hoping to earn a return over time. This can be done through dividends and capital gains (as long as the investment is held for at least one year), which is what most people aim for when investing their money. Anything outside of that timeframe will generally result in a loss.

Investment also includes diversifying your portfolio across different asset classes so that you're not overly exposed to any one sector or market condition. Doing this helps minimize risk while still achieving returns objectives over time.

Investing where to start

It is important to start by doing your research and learning about different investment options before making a decision. In addition, it can be helpful to identify the types of investments that are best suited for you. You may want to focus on Bonds, Stocks, or mutual funds when investing in the stock market. Alternatively, bonds could be a good option if you're looking for stability and modest returns over time while stocks offer potential for higher returns with greater risk.

Finally, make sure that you have an effective investment plan designed specifically for your individual circumstances and goals.

What investing account should i open

When it comes to investing, there are a variety of options available, including individual stocks, mutual funds and ETFs. Each has its own advantages and disadvantages, so it is important to choose the right one for your needs.

One of the most common types of investment accounts is an IRA account. This option offers many benefits such as tax-advantaged growth and increased liquidity. You also have more freedom when making trades since you're not limited by margin requirements or other trading limitations imposed by banks or brokers.

Another popular type of investment account is a 401(k) plan which allows you to save money for retirement without having to pay taxes on those earnings until they are withdrawn in retirement years.

Which investing platform is best

There are many different investment platforms available out there, and it can be difficult to decide which one is the best for you. Factors that you should consider include fees, portfolio options, risk tolerance, and support services.

Some of the most popular platforms include Vanguard Capital Markets ETFs (VFM), Blackrock Alternative Investment Trusts (BAML), State Street Global Advisors SPDR S&P 500 ETF (SPY), iShares Core U.S. Aggregate Bond Fund (AGG) et al. Each has its own strengths and weaknesses, so it's important to research each before making a decision about which platform is right for you.

Who invests in hedge funds

Hedge funds are a type of investment that is typically used by wealthy individuals and institutions to increase their portfolio returns. They are generally complex instruments that use mathematical algorithms to make short-term bets on the market, with the hope of capitalizing on price fluctuations.

Hedge fund managers are often compensated based on performance, and they may gamble more than traditional investors in order to achieve this goal. This can sometimes lead them into risky territory, which could result in losses for their clients if prices fall too far or when there is an excessive amount of volatility (up and down) in the markets.

Because hedge funds carry high risk, it's important to do your homework before investing money in one. Make sure you understand what kinds of products they offer and how much experience their team has with various trading strategies. Ask questions until you have a clear understanding of what you're getting yourself involved with!

Who invests in private equity

A private equity investor is typically a person or company that specializes in investing in high-growth ventures. These companies may be privately held, meaning they are not publicly traded on the stock market. They often have strong financial backing and need less money than traditional investors because their investments usually last longer than two years.

The benefits of buying into a private equity investment include opportunities to participate in early stage growth, access to capital for expansion, and more control over management decisions compared to participations in public markets. In addition, these types of deals can also provide stability for your portfolio by providing consistent returns irrespective of volatility within the stock market.

Before making any decision about whether or not to invest in private equity, it's important to carefully consider your personal investment goals and risk tolerance. Additionally, be sure to speak with an experienced financial advisor who can help you navigate this complex territory!

Which investing app is best for beginners

There are many different investment apps available, and it can be hard to know which one is best for beginners. On the plus side, some of these apps offer a wide range of features that allow you to track your investments in more detail. Additionally, some of these apps offer portfolio analysis tools that can help you to make informed investment decisions.

On the downside, not all investment apps are easy to use or understand. And because they often require paid subscription fees, this might be an impractical option for those who just want to dip their toes into the world of investing.

How many investment properties can i own

There is no one-size-fits-all answer to this question, as the number of investment properties that you can own will vary depending on your financial situation and needs. However, some experts suggest that you should aim for a maximum of four or five properties. This way, you will avoid overspending in any given area and have enough firepower to take advantage of opportunities when they arise. Additionally, it's important to keep in mind other factors such as taxes and maintenance costs when making your decision.

Remember that owning multiple property doesn't mean being a landlord yourself; rather, it allows you to diversify your risk by investing in different areas across the country or world. Plus, having more than one property under ownership provides peace of mind - knowing that if something goes wrong with any one property, you still have another option available to you.

How investing in a business works

Investing in a business typically involves three steps:

1. acquiring ownership interests in the business through shares or other forms of ownership.

2. making operational improvements to increase profits and/or growth, if desired; and

3. selling off any remaining equity (if necessary) at a profit to return capital to investors.

Where invest money

While there are many different places to invest your money, some of the most popular include stocks, bonds, real estate, and commodities. It is important to do your research before investing in any particular type of asset because not all investments are created equal. Additionally, it can be helpful to have a diversified portfolio across different types of assets in order to minimize risk while still achieving your financial goals.

If you're looking for long-term stability and modest growth, then bonds or blue-chip stocks may be a good option. If you're willing to take on more risk for the potential of higher returns, then growth stocks or emerging markets may be a better option. And if you're looking to protect your purchasing power from inflation, then commodities or real estate could be a good choice.

How many investment bankers are there

There is no definitive answer to this question, as the number of investment bankers can vary depending on a number of factors. However, according to the Bureau Of Labor Statistics (BLS), the median annual salary for an investment banker was $160,950 in May 2017. Consequently, it is safe to say that there are a fair amount of investment bankers out there.

Are investing apps safe

There is no one-size-fits all answer to this question, as the safety of investing apps will vary depending on the specific app and your personal investment strategy. However, most investing apps are designed with Protect Your Investment (PYI) in mind – which means that they will provide you with valuable information about your account, including how it's being managed and any changes or updates that have been made. In addition, most investing apps will also offer a range of features such as tracking portfolios performance over time, alerts when important financial milestones are reached or breached, and help finding suitable investments for you.

When investing in a company what to look at

When investing in a company, you need to look at the overall financial health of the business and its ability to sustain growth. Additionally, you should factor in potential opportunities that may be available as well as risks associated with the investment. You can also use stock analysis tools like Morningstar or Yahoo Finance to get an idea of how a specific company is performing and what kind of returns investors are earning on their investments.

When it comes to making an investment decision, do your homework first and don't let emotions override sound judgement. Also, remember that not all businesses will turn out the way you expect them to; it's important to have realistic expectations when investing money into anything!

How investing in crypto works

When you invest in crypto, you are buying a digital asset or coin. These assets can be traded on exchanges and sometimes have very volatile prices since they are not subject to the same regulations as traditional securities.

Cryptoassets often deal with blockchain technology, which is a secure record of all transactions that takes place between two parties. This eliminates the need for third-party verification, lowers costs associated with processing financial transactions, and creates an open system that is resistant to censorship and cybercrime.

Since cryptoassets are decentralized, they cannot be confiscated by governments or banks – meaning there is little chance that your investment will go down in flames like some other investments have over the years!

Why investing is important

Investing is important because it allows you to participate in the growth of your investment over time. By taking the time to research a variety of options, you can find an appropriate vehicle for your investments that will allow you to achieve your financial goals. Additionally, by investing regularly and diversifying your portfolio across different asset classes and markets, you are reducing the risk associated with any one investment.

Ultimately, investing is about putting down roots and building something valuable over time – which is why it's such a great way to build wealth!

How investing in real estate works

When you invest in real estate, you are essentially taking on the risk of owning a property. This means that if prices decline or your investment requires major repairs, you may be forced to sell at a lower price than what you originally paid. However, over time, as long as the property is maintained and rents are collected regularly, most investments will eventually grow in value.

One of the benefits of investing in real estate is that it can provide stable income even during difficult economic times. Properties typically have steady rental rates regardless of market conditions and fluctuations in inflation rates. Furthermore, when done correctly (i.e., using thorough due diligence), buying and selling properties can also generate significant tax breaks for both investor and tenant alike!

Why investing in stocks is good

Investing in stocks is a great way to achieve long-term financial stability and growth. The stock market has always been one of the most reliable ways for investors to build wealth over time, and this is especially true today given the current economic landscape.

Stocks represent ownership in real estate or other businesses that generate revenue through operating expenses (such as wages), returns on investments (ROI), dividends, or mergers and acquisitions (M&A). When these companies are successful, their share prices rise which benefits all shareholders – including those who bought low and sold high!

Furthermore, when you invest in stocks you are also taking on a risk factor. However, by diversifying your portfolio across different asset classes, industries, and geographic regions, you can minimize those risks while still achieving your financial goals. So why not give it a try? You may be surprised at just how much money you can save by investing in stocks!

What investments are good right now

Normally - There are many good investments available right now, and it can be hard to decide which ones to choose. Some of the most popular include stocks (both blue chip and growth), real estate, and bonds. However, the best way to find out if an investment is a good choice for you is by doing your own research. Currently, 2022 with the current inflation rates - do a lot of research.

Once you have determined which type of investment suits your needs, explore different options thoroughly before making a decision. Try searching online or reading financial magazines in order to get a broad understanding of each asset class. Also make sure to factor in tax implications when investing so that you aren't penalized down the line.

Once you have selected an investment, don't hesitate to do your due diligence by reading reviews from other investors or comparing charts and graphs with yours until you're confident that this is the right move for you.

How many investment accounts should i have

There is no one-size-fits-all answer to this question, as the best investment accounts for you will depend on your individual financial situation and goals. However, some basic rules of thumb that may help include having at least 2 or 3 separate investment accounts (for different types of investments), reviewing your portfolio regularly to make adjustments as needed, and maintaining a high degree of liquidity by being able to sell off shares quickly if necessary.

Will investing make you rich

While there is no guaranteed path to riches through investing, it can be a great way to build your wealth over time. Over the long term, stocks and bonds tend to perform better than other types of investments, which means that you are likely to end up with more money on average. Additionally, diversifying your portfolio across different asset classes can help reduce the risk associated with any one investment.

There are also tax benefits associated with investing – when you make intra-group (within an individual company) or inter-corporate (between two companies) transfers of securities within a taxation year, you may be able to claim capital gains treatment for those transactions. This could result in a significant reduction in your income tax liability!

All things considered, becoming financially independent by investing isn't as difficult as it might seem – just make sure that you do your research first and choose an appropriate investment strategy that aligns with your goals and aspirations.

Where invest now

There are many different opportunities available to investors right now, so it is important to do your research before making a decision. Some of the most popular options include cryptocurrency and blockchain investments, real estate investing, and stock market tips.

Cryptocurrencies have seen immense growth in recent years and are still considered high-risk investment products. However, there is potential for huge returns if done correctly. Real estate has always been a lucrative investment option due to its consistent yield curve and inherent stability over time. And while stock markets might be volatile at times, they offer the potential for long-term gain if you invest smartly.

How investing in stocks work

When you invest in stocks, you're putting your money into a company or corporation and hoping for the best. You may buy shares at a set price (called the "strike price") or wait until the stock reaches its market value (the "market price"). The key to successful investing is to do your research so that you know what's going on with the company that you're investing in.

You also need to make sure that you have a solid understanding of financial accounting and basic investment theory before getting started because it's important to be armed with information when making decisions about which stocks to buy and sell. Remember, if something goes wrong – like if the company goes bankrupt – then your investments are likely gone no matter how well they've done up until this point.