Investing is committing part of your income to an endeavor with the goal of earning returns or a profit. In other words, investing is growing your money.

The conventional way of increasing your income is by getting a better job or working for more hours in your current job. However, getting a better job or promotion in your current job is limited to your qualifications and competence. This option is also dependent on the availability of better job opportunities. Investing is an alternative way of earning more money from what you already have. It is different from saving or gambling. Saving is simply putting a portion of your income away for future use. Your money may earn a certain percentage of interest, or not, depending on where you put your savings.
Gambling is taking a risk to put your money on a bet on a certain outcome. You will earn money if things turn out as you expected, or lose it all if things turn out differently. You do not need to do anything else to earn more. However, you have to do something to earn money through investing. For instance, you can buy stocks, bonds, or real estate. You can also start a business. These are different ways of investing your money, and people invest their income for different reasons. The most obvious reason is to grow their money. Investing enables you to earn passive income. This means that you do not need to quit your job to invest unless you start a business that requires your presence.
Investing is a way of meeting your long-term financial goals. For instance, if you intend to buy a house or your dream car in the next 5 to 10 years, then you can grow the money you have now to reach your goal. Some people invest to live a comfortable life in their retirement years, which is highly advisable. Investing is a viable retirement plan that will ensure you can meet your expenses and even live a better life when you retire from your job. People confuse gambling with investing because of the risk involved. Unlike a permanent job where you are guaranteed of a salary at the end of the month, investing involves taking a risk. You can either earn profit or make a loss in investments.

The idea behind

investing is to buy something at a low price and sell it at a higher price. For instance, you buy bonds, stocks, or goods at a low price and sell them at a higher price. The assumption when investing is that you will find willing buyers to buy your items at a premium. External factors affect the profitability of your investments. For example, political and economic changes influence the performance of stocks and currencies. Hence, you must take calculated risks before investing all your money into one idea. It is advisable to study the trends in the industry you intend to invest in before committing your money.
It is important to diversify your investments to minimize your risks. Do not put all your savings into one type of investment. You can start with one idea, then diversify to other investment plans. If you do not understand the trends in a certain industry, or you simply do not know where to begin, ask for help from financial advisors. Get all the information you can about an investment plan or idea to make a sound decision on where to invest.