What is investment?
Everyday people keep on talking about investment, investment, investment, investment and more and more and more...
The fact is, how many people do realize what is investment really is? Is there any simple word that can describe the term of investment?
If this term asked to most of people, the answer mostly will be like this:
"Investment is about investing your money in stocks, real estates or anything. When you invest, you will gain the profit"
"Investment is about getting more from what you has done. Example, if you buy a house for a value of 100k today, the value will become let say 200k in next 5 years. See, that's is investment really are"
It's not totally wrong and also totally right. Most of the statement above will instantly give a rough picture to people what is investment are.
However, the most accurate definition of the investment term is
"Investment is about planning. You are planning to gain more than what you have now. In simple words, you are planning on multiplying your income in times. The longer you live, the more you will gain. Investment is not what normal people called as stocks, real estate, mutual funds or even bonds. That's all are the rider, transport that can help you achieve your planning. What is your planning here? The planning here is what you call as investment"
This is the definition that can be found in Robert T. Kiyosaki book "Rich Dad's Guide to Investing".
To me, the term definition seems suit with what the situation are.
Well, maybe different people will have different definition. Feel free to share with the worlds.
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