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Introduction to Personal Investing

The Basics

Why should I invest my money?

People invest their money for a number of important reasons. They wish to have some level of financial security now and in the future. They understand the concept of saving compared with spending, and wish to earn some return on their money over a period of time. They also wish to have someone pay them either interest or a share of the profits of a company, or to realize gains in the share prices or value of their investment choices. If you were to invest your money in a bank savings account, the money earns interest in exchange for the bank’s use of the money. If you buy shares in a company, you have the potential to earn income through distributions of profits of the company, and if you sell the shares, you have the potential to sell the shares at a higher price than what you paid for them initially when you invested. If you buy anything of value, and hold it until it increases in value relative to what you paid for it, you are investing.



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