<center > </center >
---
##### Introduction
No doubt that we are currently in the dispensation of economic development and global industrialization, some will call it jet age or computerized world. It would be advisable for any investor going into any business to properly and carefully define what he / she wants to achieve in that investment.
What is investment?
Investment: Is a placement of capital in expectation of deriving income or profit from its use or appreciation. [source](https://en.m.wiktionary.org/wiki/investment)
> An investment by definition is either current income or stream of future income. - Warren Buffett
Previously, investment is divided into two parts;
* short term investment
* long term investment
But recent research conducted clearly divide investment into three integral parts;
* short term investment
* long term investment
* fixed /income saved investment.
After extensive research economics added the fixed/income saved investment, the objective of the initiative is to further more broaden the understanding of how investment functions.
Let's quickly look at the investments plans:
##### Short Term Investment
This type of investment is done within a short period of time. In some cases the intention of the investor is to get his capital back within the stated period of time. This involves hiring and renting of car for a service, supply of goods and services with the mindset of clearance.
##### Long term Investment
This type of investment is generational, with great value for sustainable development. The investors next of kin, family and others could succeed the investment after the investor have explored some part of the dividends.
Examples of these investments are but not limited to the following;
* factories
* industries
* landed properties
* schools
* hospitals
* petrol stations
* Human capital development and so on.
##### Fixed/ income saved investment
Fixed/ income saved investment means little or no action. Some investors perceive fixed/income saved investment as safe investment.
Examples: Bonds, securities,pension funds, stocks, shares and other means by which commodities are fixed and saved. An investment which doesn't allow you to perform
is called fixed/income saved investment.
Fixed/income saved investment is said to be inelastic in the sense that people are using, borrowing, and running your money with returns that is not in your custody but to the bank. What about bonds and shares as saved per say? A situation where you will be in speculation on the rise and fall of the market.
Long term investment is characterized by elasticity that is to say; it is active, stretchable, adjustable on the way to peak with everyday improvement, innovation, research, with more actions and many more related packages.
According to Lucy kellaway,
> one of the purposes of a bank is to keep depositor's money safe and lend it to people who aren't going to run off with it.
my questions; who are these people who aren't going to run off with the money? and what could trigger a bank most in lending this money out to them?
Therein lies the answer to my questions; they are certified investors, which literally means they are long term investors who return interest to the bank.
Economic experts have criticized the fixed/income saved investment as not falling in the bracket of long term investment, thereby saying; how do you make impressive investment returns without allowing yourself to become exposed to excessive risk? For there are no two investments that perform the same way at the time.
The purpose of this note is to remind us about the effect of learning and change which goes with invention and discovery and has its elastic infinity. A consideration can be given to my point of view by constructing a new field for invested income savings rather than allowing it flow through the stream of long term investment with a faded umbrella.
I also recommend fixed/income saved investment to mostly the average investors, it's advisable to set the bar lower if you are an average investor, by constructing a balance portfolio of low cost mutual fund.
##### Investment steps
* Have a clear information before investing.
* Consider type of investment.
* Seek for professional guide.
* Have a target.
* Invest on contemporary goods and services.
* Supervise and follow up your investment.
* Secure your investment legally.
* Do not stretch above your financial capacity.
* Diversify your investments.
* Consider being the first.
#### Summary
> The most important thing for any trader is risk
discipline. Without risk discipline the trader will fail despite how good his strategy might be. - Jamie Lear.
Hence follow the steps accordingly, make sure your investment is insured, and then you are rest assured to be a great investor.
Thank you!
Happy new year everyone!
---
---
Image source [getty images](http://www.gettyimages.com/fotos/money-?family=creative&phrase=money&excludenudity=true&sort=best#license)
---
---
<center > </center>
hiveblocks