What is Investment
If i can say what is investment in a simple meaning so that’s ” Increase of our Income or Double our Income”. Investment is the act of putting money to work to start or expand a business or project or the purchase of an asset, with the goal of earning income or capital appreciation. Investment is oriented toward future returns, and thus entails some degree of risk.
Types of Income Investment
If you want a investments of your money. there is many types of investments in a market.
Stocks may be the most well-known and simple type of investment and Bonds. When you buy a bond, you’re essentially lending money to an entity many more types of your income. Here below of easy way and minimum risks of Income
- Dividend Income
- Capital Income
- Royalty Income
- Rental Income
- Profit Income
- Earned Income
- Residual Income
Income earned by owning shares of stock, depends on company earnings. Relies on research and intuition to make educated guess on which companies will perform best.
Profit gained from the sale of property of shares in stocks, like flipping for profit, but with stocks and properties.
Royalty income is a payment received for the use and exploitation of artistic or literary works, patents and mineral right. Licensing your proprietary work for use by other people. From rappers to patent creators.
Income gained from renting out a property for a profit. This is how you landlord generates passive income. Make sure your expenses are lower than profit.
Income earned from buying products and selling for a profit. The name of the game here is buy low sell high. From selling water on the streets to dropshipping.
Money derived for paid work trade time + effort for money. The first step towards financial freedom is creating your first stream of income.
Residual Income also know as a Passive Income. Earnings derived from a rental property, limited partnerships or other enterprise in which a person is not actively involved. use your assets to constantly generate income for you wether you work or not.
Importance of Investment
When you learn and understand an investment, you will be able to make informed decisions on how to grow. Whether you invest in stocks, bonds or real estates, you will learn to predict the future of your investment and plan on to become a leading investor in the economy
In an economic sense, an is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.
Risks of Investment
In finance, risk refers to the degree of uncertainty and/or potential financial loss inherent in an investment decision. In general, asrisks rise, investors seek higher returns to compensate themselves for taking such risks. Every saving and investment product has different risks and returns.
Way to attract Money
- Learn From Other
- Learn From Failures
- Share Your Knowledge
- Not Afraid to Ask for Help
- Invest in Yourself by Education
Investment for Beginners
- Select Invest Style ” Trader or Investor”
- Open Brokerage Account ” Webull, Robinhood, Etc”
- Choose a Vehicle “Stocks, Options, Bonds, Etc”
- Develop Investment Plan “Risk Managements and Strategy”
- Start Investing ” Research, Learn and Begin”
Characteristics of Investment
- Risk Factor. Every contains certain portion of risk. …
- Expectation Of Return. Return expectation is the main objective
- Safety. Investors expect safety for their capital .
- Stability Of Income.
Objectives of Investment
Depending on the life stage and risk appetite of the investor, there are three main objectives of investment: safety, growth and income. Every investor invests with a specific objective in mind, and each has its own unique set of benefits and risks.