As mentioned in the previous post, investing is a way of saving money for the future. It is the manner by which we grow our returns for the efforts that we put in, and being in capitalistic societies we measure the returns mostly by money. You could also put other factors for measuring this, and the bottom line is, a right investing is where after a course of time dt your investment grows by a positive increment dX
X ——————————> X + dX (after a time dt)
For example, the education that you had in your school and college is one of the best investments you woud have ever made. For your 50K * 4 years of expenditure, your returns are many times that amount, provided you had selected field closer to your interest and put efforts. If you had not put efforts or selected a bad area you lose most of your principal. Even if you had selected the right area, the returns will be few years after you start studying. Read the rest of this entry »