We call the activity investment by which an individual, a company or an institution allocates its savings or dividends to another activity that allows it to generate profits over time and that has the objective of preventing the loss or waste of said capital.
Investment is a very interesting economic movement and simple. If we are able to save an amount of money per month and allocate it to investment, over the time we will see how our capital has increased without any extra effort from the effort of saving.
But investing is a serious decision that must be the result of a meditation process because as it can generate profits, if the money is badly invested it can also generate losses, so before making an investment it is important to do a market study where we want to allocate our funds and be aware of the risks.
On many occasions, fear of investment leads to saving savings in accounts or deposits. It is a safe option but with zero performance, that is, there is no option to lose that money but also to earn more with it. In addition, in terms of savings deposits, inflation must be taken into account, that is, the loss of value that money can suffer over time.
Investing your money can be taken from the point of view of creating an economic mattress for possible emergencies in the future. While your money invested grows you can have the peace of mind of being able to use it at some necessary time, such as an unexpected expense or loss of work.
Read the full note in detail: http://forbes.es/business/42248/because-it-is-important-to-invest-your-money/ (Spanish).