Timothy Sumer

In this video, I discuss the differences between Investing and Saving. It's important to understand the differences in order to make the right financial investment decisions. Investing is basically putting your money to work in order to generate a positive return with the expectation of generating income, profits or gains. One can invest in many ways either directly or indirectly such as using money to start a business, buying real estate or into the stock market. Investing is different from saving because investing means that there is some risk involved because the project could fail, you have market risk also.. so investing involves speculation. The speculation that your investment could grow but also that it could also fail. The core principal of investing is to outpace the rate of inflation. Inflation is the gradual rise in prices and the slow decline in purchasing power of your dollars over time. The goal is to make enough off your investments to exceed the dec