Lesson 01
What is investing?
Investing is putting your money to work today so it can grow into more money over time. The trade-off: accepting some risk in exchange for potential return.
Saving
Low risk, low return. Safe today, but inflation slowly erodes it.
Investing
Accept some risk so your money can outpace inflation and grow.
Compounding
Earnings generate more earnings. Time is your biggest superpower.
Diversification
Don't put all your eggs in one basket. Spreading money across different assets โ bonds, stocks, and funds โ softens the blow when any one of them stumbles.
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5 baskets ยท 5 chances for resilience.
The 3 building blocks you'll learn
- BondsLend money, earn interest.
- StocksOwn a slice of a company.
- Mutual FundsPool with others; pros manage it.