Investing involves putting money to work toward projects that should generate some type of return over time. The Investors Centre includes rents from real estate, capital gains from stock purchases and interest income from bonds. Investing differs from saving in that the investor takes an implicit risk that the project(s) may fail, resulting in a loss of invested funds.

Choosing the right investment options depends on several factors, including an individual’s level of comfort with risk and their financial goals. In addition, it’s important to consider how long they want to keep their money invested and whether they want a high or low rate of return. There is often a trade-off between investing in safe, stable assets that pay a modest or even negative return and investments that could produce higher returns but come with more volatility.

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Before you invest, make sure your emergency fund is strong and that you’re not investing too much to afford paying bills if your investments go down. Also assess your tax situation to understand the impact of fees and taxes on your overall investment returns.

If you don’t have a lot of money to put toward your retirement or other long-term goal, it may be worth investigating online services that allow you to start with small amounts and automatically reinvest dividends and interest payments. The Rule of 72 can help you estimate how long it might take for your initial investments to double if they continue to be reinvested at the current rate.