Tip 8 – How to get money savvy: Grow your wealth – Investing
“Growing your wealth” seems to be the new buzz word around town. Most financial institutions are trying to educate “the man on the street” about investing and trying to get them to use their platforms. That’s how easy investing has become. There are online platforms you can start to use to trade shares, bonds, ETF’s and more. These institutions have made it very simple for us to try our hand at investing.
When it comes to your financial security, it’s all about planning and long – term goals.
Investing gives you the opportunity for financial gain but also the risk of losses. You can buy stocks, bonds, ETF’s, unit trusts or even invest in property, with the hope that the value of the asset will increase and you will make money over the long run.
Investing usually has a higher potential for growth over the long term than keeping your money in a risk-free savings account or cash.
Becoming wealthy is really simple… SAVE AND INVEST!
Why do we invest?
To grow money to create annuity income in the form of interest, dividends and capital growth.
What is investing?
- Investing is putting your money to work for YOU.
- We invest to grow your wealth over time in the form of interest, dividends and capital growth.
- Not all investments are the same and it is vital to become a knowledgeable investor. Robert Kiyosaki often says that it is not the investment that is risky, but the investor.
- Interest is the money that is paid to you when you invest money with an institution. Interest is the cost of money.
- a sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves)
- As a company grows, it becomes more valuable. If you buy shares in a company and sell it when it becomes more valuable, the price of the shares will increase. You can make profit the on the shares you own.
What is the difference between savings and investments?
- Savings relates to the act of putting your money in a safe place.
- Investment relates to putting your money away so that your money will grow.
At Money Savvy we run savings & investing workshops where we will teach you how to grow your wealth through investing.