What is investing, anyway? Very simply, investing is when you allocate something (usually money, but it could also be your time or efforts) with the goal of getting some sort of gain (income or profit) from it.
Most of the time, buying a car isn’t investing because a vehicle is likely to decrease in value over the time you own it. But when you put your money into shares, you usually expect them to be worth more in the future than they are now (although they may go up and down), and you might get some income (dividends) from the shares while you hold them too.
What is a “share”? Well, when you invest in a company, you take ownership of a piece of that company, known as a share. Company owners might decide to put a portion of their company up for sale by listing it if they want to raise money, maybe for growth plans or because they want some reward for the work they have put in. People buy those shares because they think the money will be worth more in the long-term, either because the company will grow and become more valuable, or they will be paid dividends along the way.
So, why might you want to invest?
The reasons people decide to start investing – whether it’s in shares, funds, a business of their own or investment property – vary a lot. Some people want to set themselves up for a comfortable retirement at some point in the distant future. Others want to build up their wealth for a specific purpose, or to have a nest egg available to them in case they need it. The reason why you want to invest is as unique as you are and it’s up to you.
This story is from the March 27, 2023 edition of New Zealand Woman's Weekly.
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This story is from the March 27, 2023 edition of New Zealand Woman's Weekly.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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