And like the interest earned in a savings account, your share investments may also give you an income in the form of dividends. Or, if you have an investment property, you may earn an income through the rent your tenants pay.
However, unlike a bank account, your investments also have the potential to grow or fall significantly in value – sometimes quite rapidly. This means you have the chance to make a lot more money than you can just by saving your cash, but it also opens you up to the risk of losing your money.
Think in years, not months or days
The aim would be to make money on an investment by buying it at one price and selling it at a higher price that covers your costs and still delivers you a profit.
But markets rise and fall in value all the time and not even experts claim they can 100% predict where prices will go from one day to the next.
For most investors, it can be wise to consider the long-term when investing, make sure you know your personal risk appetite and work towards reaching your personal financial goals over time.