Investing Definition | Investing Myths Debunked


if you feel completely lost when it
comes to investing you are in the right place today we are kicking off our
making sense of investing series and over the next several weeks we will be
sharing videos covering the fundamental things that you need to know as someone
who is new to investing and wants to learn more no fluff no overkill just
straight facts in today’s video we are starting from the very beginning what is
investing anyway and why should I care about investing why should I invest we
are answering those questions in today’s video hey wealth builders and welcome back to
the bemused or we are making sense of money for the bewildered and confused
young adult and this is your first time seeing one of our videos my name is
Akeiva if you want to learn how to start adulting with your finances build wealth
and use your money to live a life that you love go ahead and join the wealth
builders squad by hitting that subscribe button
and while you’re at it make sure you turn on that notification bellow so that
you never miss when we post new videos especially if you’re interested in this
investing series make sure you have a notification bell turned on so that you
never miss a beat so the fundamental question what is investing investing is
the act of committing money or capital to an endeavor with the expectation of
generating an income or profit so by that definition there are two criteria
in order for something to be considered an investment firstly you must have
committed money or capital to this project so it doesn’t necessarily have
to just be money that could take the form of another asset like machinery or
property anything that is an asset that will help you generate a profit so
the second part of our definition and criteria is that there must be an
expectation of income or profit for example spending money on a hobby
something you’re not expecting to make money from does not count you’ve got to
have both or else it’s not an investment investing can take many forms a business
the stock market and real estate investing are just a few examples now
what is investing not and I want to go over four myths that we need to debunk
when we’re talking about investing the first myth is that stocks are the only
way to invest after we talk about investing many equated to stock market
investing but that is not the only way to invest now as we just talked about in
the definition we already know that that is false there are many different ways
in which you can invest remember that the stock market is only one way to
invest number two investing is not speculation it’s not gambling when you
invest there must be an expectation of return based on reasonable factors it’s
not just throwing your money at something and hoping for the best that’s
not really investing that’s speculation the third myth is that you need a lot of
money to start investing and that is simply not true later in this series
we’ll be covering micro investing and other ways that you can get started with
investing with low sums of money the fourth myth is that investing takes too
much time and that is also false investing can be a very passive activity
if you want it to be and we’re going to talk about that and further detail later
on in the series as well so now that we’ve defined investing and covered what
investing is not what’s actually the deal with investing like why do we
invest why should I care why does everybody talk about investing why is it
so important so here’s the deal if you want to build well investing is not an
option it’s mandatory sure you can work
and save your entire life but that can get you but so far if you want to build
enough wealth to live comfortably and even increase your impact on the world
then you need to invest but where do you start make sure you subscribe and have
that notification bell turned on because in our next video I’m going to be
covering the ten terms that you need to know and understand before you take the
plunge into investing if you’re excited for the rest of this series comment the
word exciting down below in the comments share this video with someone that you
know is interested in learning more about investing or is interested in
getting started with investing and also if you have any investing related
questions that you would like answered drop those also in the comments below
and make sure you have your notification bell turned on because we just may
answer your question in a future video thank you so much for watching and I’ll
see you in the next one

8 thoughts on “Investing Definition | Investing Myths Debunked

  1. Y'all asked for more videos on investing, so here we go! Drop your thoughts/questions below!

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