Investing involves putting
money to
work in order to
earn additional money in the forms of
capital gains,
interest,
dividends, or
profit. Before you invest check the following
criteria:
1.
Safety of the investment
2. Potential
return on the investment
3.
Liquidity (the ease of converting the investment into
cash)
4. Potential
growth of the investment (the chances of the investment
increasing or
decreasing)
Stocks and
bonds are two of the most common forms of investment.
Real estate is another common form of investment, and involves the purchase of a
home or a piece of property. Putting money into your own or someone else’s
business is another way of investing.
Finally, some people collect such things as
antiques,
works of art,
stamps,
coins, and
rare books for investment purposes. In recent years,
first editions of
comic books and old
phonograph records also have become valuable objects to collect as investments. Investing in such collectibles requires as much serious effort and study as any other investments mentioned above.