Another definition of the word investment

For example, you have invested money in the purchase of an apartment and live in it themselves, paying utility bills and other costs of its contents. Will this be an investment? Of course not. This will be your liability. But if you do the same Apartment for rent and make a profit greater than the costs of its content, that's when it is the object of investment. It can be considered your asset.

Many people with the word investment in their imagination draw skyscrapers of Wall Street, Candle graphics trade, as well as people in white shirts with starched collars.

Another definition of the word investment, in my opinion, it is fairly accurate picture displays. Investing - an investment of capital funds in the programs and projects in all kinds of property and intellectual property in various areas of the economy with a view to profit (income) exceeds the costs.

For investments include funds invested in:

Target bank deposits
stock
bonds
Other securities
Shares
Land use rights
The right to use a variety of valuable resources
The right to use the intellectual property
Movable and immovable property (buildings, structures, equipment, raw materials and other tangible assets)
The question arises whether it is possible to call an investment, process their own trade on the stock market or currency exchange Forex?

In my opinion, no. These people are called traders, not investors. Why? Because the trader involved in the process of creating a profit, he sits in front of the monitor continuously tracking the slightest fluctuations of the market to make it in time to sell and make a profit. These people are engaged in trade, not investment. In my opinion this is work, not investing, I certainly do not claim to ultimate truth, maybe someone thinks differently such as David Nepo.

So back to the definition of investment.

Investing - an investment of equity investments, partially or completely, to create assets that will be in the future to bring a permanent stable profits in the form of passive income.

Why passive, perhaps you ask? In my understanding, the investor - is the person who receives the income from invested their funds directly, investments, not participating in the process.

On this basis, the investor can name the person who uses it, at first glance, speculative instruments such as stock market and currency market Forex, but it is not directly involved in the auction, and for example uses the trust. What is asset management, we will discuss in the following lessons from our video course "Successful investors."

Investing - the art to multiply money.

Why investing art? The fact is that successful investing can not be learned by reading a book or doing the smart set of specific actions. Do not be scared and think that investing - it's something complicated. In the next lesson, you will see that there are tools that allow you to turn investing in an easy and exciting journey. Each investor has a number of tools and hard to find two investors who use the same tools of investment. Investors master this art, and his own experience plays a not unimportant role.

To see clearly what is investing, I suggest you submit a hen lays the golden eggs. Eggs are laid chicken we sell, and the money we buy another chicken, then another and another. Thereby increasing their asset. As a result, we get a whole farm chickens that carry the golden egg, which is enough for us to realize our desires and a decent standard of living.

Under our chicken in this example refers to the assets we own, and under the eggs - passive income from assets. Under the farm hens mean capital investment portfolio increased due to the acquisition of new chickens. What is the investment portfolio, we will discuss in our next lessons at david nepo get answers.

I think it is important to note that the investment - is one of the few ways that leads to financial freedom.

Like any business, investment - a risky business. But, as noted by experts in the field, for the most part is not a risk in investment instruments, and in the investors.