What Is Investing?

Investing can sound intimidating. Between Wall Street’s greed, the mind-numbing financial jargon, and the 24/7 stream of news to keep up with, investing might seem like something everyday Americans can’t do.

That couldn’t be further from the truth.

Investing is simply putting your money to work for you. The goal is to put your money into an asset that will return more money to you over time.

That can be anything from starting your own business to buying a new home to buying gold. Some people even invest in wine or art.

If what you buy pays you income – like the profits from owning a business – or grows in value over time – like the price of your house appreciating in value – then you’re investing your money. Stashing your money under your mattress or in a bank account might help you accumulate money over time, but it’s not investing.

Of course, not all investments are equal. Some investments simply don’t grow your money quickly enough to be worthwile. If your money is sitting in a savings account you know how frustratingly slow the interest adds up.

Some investments are riskier than many people would like. Taking your life’s savings to start a business could end with you losing it all if the business does poorly. For example, 60% of restaurants fail in their first year. While there are a few success stories of mom and pop shops turning into global empires, you’re risking everything you have to hope you’re one of the few that survive.

But the most popular way to invest is by buying publicly traded companies on the stock market. Stocks offer some of the highest upside of any investment class and allow you to invest only what you’re comfortable with.

Keep in mind, we’re talking specifically about investing. You may have heard of day trading or other short-term ways to use stocks to make money. Traders try to turn a profit by buying and selling stocks quickly based on trends and patterns they spot. It’s a potentially lucrative way of making money on the stock market, but it’s very different than investing.

To invest, all you need is the willingness to grow your money and the practical knowledge you’ll get from taking this course.