Knowing Investment Basic

Investment is a word that usual to our ears, but whether the nature of the investment itself? Investment is often defined as a place for the money or capital or interest by buying the property, stocks, bonds, etc., but in general the investment can be understood as taking / use of time, money or labor to the advantage / benefit in the future. So basically the investment is "buy" something that is expected to be "sold back" in the days to come up with a higher value.

Why do we need to invest? There are many reasons for this, one of which is preparation for the future as early as possible through the preparation of plans that are tailored to the needs of today's financial capability. As we know over time the value of the currency could be reduced because of inflation, which for example increase in prices of goods and services, inflation is one of the main reasons why we need to invest, either the funds or assets that already exist or will we have to be "value "it can be maintained and indeed expected to increase. From the description above can be the main reason for this drop 4 investing are:
  • The need for future or current needs that can not be fulfilled
  • The need to protect the value of assets owned
  • The desire to add value to existing assets
  • The existence of Inflation
  • Investment Risk
Risk is part of the investment, because the circumstances in the future is also uncertain and can not be accurately predicted.Investment results obtained may not be in line with expectations, and can even produce the opposite of loss, because one can not entirely escape from the risks posed by uncertainty, it is in this context that the investment be a part of life, intentionally or not people always invest, learning, working and doing business can be understood as an investment, the investment can be seen as a process of making a choice, not only to increase the wealth but also to maintain and protect what already exists.

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