Investment involves allocating resources into projects with the goal of increasing their value over time. Saving simply preserves resources for later use and earns modest interest, while investment actively works to add value through means like opening a business. Investment carries risks like potential losses, especially without expert advice. While investment can yield high profits, poor decisions may lose all resources invested. The benefits of investment are keeping resources safe for the future while gaining value. Even with risks, investing is preferable to spending all resources with no future provision. Investment offers the potential for long-term wealth growth, though careful research and planning is needed to balance risks.

1. What Is Investment ?
In layman viewpoint, investment is like getting resources and activating them into a given
project with a view to making the resources grow. I make a distinction between investment and
saving which simply means keeping resources for a later spending episode. Of course you may
earn interest on resources by banking them but it is not on the same scale as investment which
is primarily about adding value to resources.
Investment does not just apply to companies but can also apply to individuals. For instance you
may get an inheritance of a given amount of money. You can either choose to spend it on your
own personal needs, save it in a bank or invest onto some areas with Investments consulting
Firm for strategies and more. With investment you would consider things such as opening up a
business with a view that the long term returns will far outweigh the loss of temporarily
pleasure that you get when you spend money.
What Risks Are Associated With Investment ?
The idea of investment is a good one, especially when compared to spending money. You could
potentially make a lot of money from your investment. In fact you could make even more
money than the investment itself which means that you have made a healthy profit. If you think
this is the only side to investment, you are sadly mistaken. Like any business proposition,
investment carries with it the serious risk of making a loss. Remember that for any profit that
you make, the risk rises. In fact if you do not invest wisely you are likely to lose everything.
When you are entering into an investment project you sometimes need a lot of advice and
support which is not readily available. There are certain professionals whose whole business
model is about helping others to invest. However they do cost some money and if you are not
willing to or able to pay for their services then you will have to rely on your own instinct which
may not be reliable at all.
What Benefits Can Accrue From Investment ?
Investment is a means of keeping resources safe for a rainy day yet with the added bonus that
you might just add value to the original investment. In fact when people fall into money, the first
bit of advice they get is to invest for their future. This is a wise decision because even with the
risks investing money is far preferable to simply frittering it away.
However it is important not to forget the midway point of saving which is between spending and
investing. It does not carry as much risk as investing and does not deplete the resources as
spending does. Therefore it is a compromise. However you will hardly be really rich unless you
are able to invest wisely. Of course there are exceptions too.
Investment is but one of the means by which you can grow your resources. With investment you
carry the risk that the returns may not be quite as high as you would like and that you may lose
all your resources. However if you do not invest and spend your money away, the process of
wealth creation will never take off.