What Is an Investment?

What Is an “Investment”?

Investing or the making of an investment cannot be confined simply to the world of economics and finance. While it is true that it is most commonly seem in that frame of reference, it is broader and is actually a part of every person’s life.

Investment, as I like to define it, is the act of putting effort into something now in the hopes of getting a return later. It can be almost ANYTHING – time is a very common investment. Take fitness, for example: you put in time at the gym now, so that you end up with a healthier body and better physique later. In a sense, as I write in my blog, you are trading time now for more time later.

There are hundreds of types of investments. From stocks, bonds, and mutual funds (and all of the types in each), to government investment in military or infrastructure. The list is essentially never-ending. But these are not the type that matter most, though I do find them an essential part of financial security and freedom. Examples of investment outside of the markets or government often include investing your time in another person, – much like Multi-Level Marketing (MLM), or the way businesses often use franchises – investing time and effort into cultivating your intellect, or investing money in a toy, movie, book or other item that will bring you some sort of happiness. The reality of the situation is, a large portion of the things we do are technically investments, and the return on investment is simply our incentive. And, as I hope we are all aware, incentives drive the world, and drive 99% of everything you or I do.

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So whether it is your goal to lose 60 pounds this year, or whether you want to start your own network of multi-level marketers, remember that you’re making an investment. That knowledge alone will give you an extra incentive to work hard to achieve your goal.

On an ending note, look for articles or blog posts in the future to learn in detail about each type of investment. And learn to expect that no matter what, if someone is putting time in to something, they want to see something out of it. So maybe, just maybe, learn to be a skeptic and not always trust that a friend or co-worker’s motivation for helping is completely pure. Because, well, it MIGHT not be.