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Investing is the process of trading your present money to earn more money in the future.
You have three main choices when it comes to investments: stocks, bonds, or cash. There is no one-size-fits-all answer to the question of proper asset allocation, and your ideal mix depends on your age, risk tolerance, and time frame until retirement.
It is crucial that we invest according to our life stage and are aware of the options available which best suit that life stage. For example, taxable income is relatively lower at the start of one career and tends to increase as our career progresses. This stage is also the beginning of establishing an asset base, there is little income from capital gains or interest and fewer deductions. As you grow, your income and responsibilities also tend to increase. At this stage usually, these is a family and some serious goal planning begins. Tax, at this stage, can be managed while achieving financial goals like buying a house, investing in insurance to safeguard the future of your dependents and also starting to invest to build a kitty for retirement.
Investing is a tool for building wealth, but it is not only for the wealthy. Anyone can start investing with small amounts and add to his savings (piggy box) periodically. Difference between investment and gambling is that investment takes time and is not a short cut for quick earning.