Investments Demystified - Part 2

According to The Merriam-Webster Dictionary. An investment is an expense for income and profit. It is the sum invested or acquired the property. That's the problem with English dictionaries do not always within us, what we want, right? So here is my definition of an investment is all that we give up to get something better in return. The two points to note here

1. ANYTHING
2. BETTER

Why do I have to emphasize those two words? For this reason, you can investsomething into something else, you invest your time, your money, your energy, your skills, your TV I know that sounds strange, but this opinion. If my 42-inch plasma television, because I earn a ticket to purchase and a trip to China I would be three times the price of the TV set should not it would be an investment? In addition, an investment can not be said that if the not receive the process of investing a person who does something better than what he put inside, got it, that aHowever, investors investing differ from traders but the truth is that they are relatively the same because the principles of the same - buying and selling are. But an investor can know what the dealer does not want and I do not always share that with you in a minute. But until then, the understanding of the principles and dynamics of investment, calls for the examination of three major related concepts. These concepts are:

• Earnings
• Consumption and
• Savings

TheseFactors would be discussed in detail Demystifying Investment in Part 3.