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The Merriam-Webster defines the meaning of investing as: Committing money in order to earn an expected financial return. Investing your money is the No. #1 most effective and surest way for you to become rich. Start by opening an investment account so that you gain access to the largest money making vehicle in the world, The Stock Market. When you invest, you make a conscious choice to make your cash work harder by directing your hard earned money into a product (stocks, bonds, mutual funds) expecting a level of return based on the past performance of the particular product. Compounding Interest One of the great things about investing is earning compound interest. This is really what investors should aim for if they are intent on making real profits from investing. Before anything else though, you should want to find out first if this is achievable considering your investment objective, plan and money management rules. Part of the beauty of investing is the miracle of compounding interest. Ben Franklin called it the "Eighth wonder of the world". It doesn't take a genius like Ben Franklin to see why. Compound interest allows the value of your investment to grow exponentially over time as you let the money continually earn interest on itself. "The return gets greater and bigger with each passing year." With compound interest, that $1,000 you save this year can become $2,839 in just 10 years. When you don't touch the investment money, you allow time to do its own things. You can turn $1,000 into $10,000 without lifting a finger. If a 20 year old puts $1,000 into a mutual fund returning an average of 11% per year, by the time she turns 50 that money will have grown to $22,892. If she had waited until she was 30 to start investing she would have only $8,062. See what a difference just 10 years can make. So, don't mess around with this "Eighth wonder of the world". If you haven't already started investing, start investing now! Compound interest is by far the best way for you to reach your retirement and investing goals. Hope the above information helps. Relevant Reading :
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