Module 3 | Going Beyond

Investing

🤔 What is investing?

Investing is setting aside some money to buy things (or assets) that have a possibility of increasing in value over time.


Let's start by defining the main types of investments!

Stocks and shares are where you buy a small piece, or slice, of a company. You could earn money if they pay you a part of their profits (called a dividend), or if the stock of that company grows in value, and you later sell it for a profit. These are the riskiest, and although the potential profit is higher, so is the potential loss.

ETFs (exchange-traded funds) are like a basket of stocks, allowing you to invest in lots of companies at once. This diversifies and lowers your risk of a loss. Since you’re investing in so many other companies, if one doesn't do well, you don't end up losing as much as if you went all-in.

You could also buy real estate - which means investing in properties, but because that requires a mortgage (home loan) and a lot more money to begin with, it’s something you could look at later down the road.

Before you jump right in, though, here are a few things to keep in mind:

All investments involve risk

Which investment platform?

🌱 Activity

Try make a start by investing whatever amount you’re comfortable with: it could even be as little as $5 or $10 a week (which is possible on many investing platforms). Remember, making a start is more important than the amount you invest each week.