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• Media and Journalism , Personal Finance , US NEWS
• September 3, 2025
• 51 views

What is Investing and Why Does It Matter?

Investing means putting your money into assets that have the potential to grow in value over time. Unlike saving, where your money sits safely but earns minimal returns, investing harnesses the power of compound growth to build substantial wealth. Why Beginners Must Invest: Example of Compound Growth: If you invest $200/month starting at age 25 with 7% annual returns, you’d have about $525,000 at age 65. Wait until 35 to start, and you’d only have about $245,000 – less than half! Investment Basics Every Beginner Should Understand Risk vs. Return Relationship Higher potential returns typically come with higher risk of losses. Understanding this trade-off is fundamental to successful investing. Low Risk, Low Return: Moderate Risk, Moderate Return: High Risk, High Potential Return: The Power of Compound Interest Albert Einstein allegedly called compound interest “the eighth wonder of the world.” Here’s why: Simple Interest: You earn returns only on…