By: Maryam Siddiqui

What is investing?

Investing is a financial technique to gaining a profit. Investing involves spending a certain amount of money and expecting to earn that money back by putting that money towards something lucrative such as a business. Investing requires making a strategic plan budgeting money .

Why Should We Invest?

Although not guaranteed, Investing allows you to be able to gain a profit quickly. This can save time and energy because if an investment turns out to be generating profit, then you may not have to work as much, or you will have more to spend on. This factor can be beneficial because it allows you to not have to worry about overspending. Investing sooner can also help you to gain more money for retirement or big purchases.

What are the most common types of investments?

1. Mutual Funds- Mutual funds are a investments in which a large group of people share the costs of the investment. The profits and losses are shared among the members of the group. They usually involve stocks and bonds.

2. Hedge Fund- Hedge funds incorporate various investment tactics to invest and gain a profit. This type of investing can get somewhat aggressive.

3. Stocks- This is money that companies sell in order for others to receive a mall amount of ownership on the money of the company. This can end up being lucrative to the company.

4. Bonds- A bond is money that investors give to companies with an interest rate on it. It allows the investors to help different companies, but also increases profits for the investor because they are gaining money on interest.

How to invest with a small amount of money?

There are different way to invest with even a small sum of money. You can invest in stocks and bonds, mutual funds, or in something such as a certificate of deposit. A certificate of deposit is an account in which you invest money into the account, let it sit in the account for a while, and allow it to accrue interest and the amount of money will grow for a certain amount of time. This is helpful when wanting to profit on extra money, and is less risky than stocks and bonds, because the value of stocks and bonds changes daily.