Most people think that everyone who has money is an investor. In reality? Not necessarily. There are significant differences in both. Rather than just spending the money they have, investors use their money to get items that offer great potential returns, either in the form of interest, income, or value appreciation.

As you study the management of money, you will learn to devote your limited resources to things with the greatest potential return. It could be to pay off debt, continue your education, or renovate your home to maintain the value of its property. Of course, that also means buying stocks and bonds-either individually or by mutual funds or in exchange-traded funds.

Thanks to technology, the world of investment offers most likely to anyone with a few dollars and an internet connection. We will introduce you to the investment world, learn the basics, and make good investment decisions right from the start. So here are the basics of investing wisely.

Investment is not gambling

Too often we hear, "to invest is to gamble". People believe that invest equally with gambling. This is so wrong. Even if you search for definitions in dictionary, investing and gambling are very different. With investment, you make logical decisions with calculations that can be learned to gain a potential profit. While gambling means you play a coincidence game. Investing involves risk, of course, but there's a big difference between smart investing and gambling.

Buying "hot stock" without doing any significant research, is gambling. By setting aside money, putting it the best stock or fund for your purpose, and letting it last for a long time is an investment. If you like to research stocks and do trade fast to find short-term profits, good. That is fun.

Choose your platform

First, you must choose a platform to invest. Available platforms include:

Online stock brokers - these are brokers that available online. You can usually do everything without having to talk to someone, which is good for some people. Online brokers are also often much cheaper than traditional brokers-that you can meet face-to-face in the real world.

Financial advisors - some people may choose to invest with a financial advisor because they want face-to-face interaction, professional advice, and do not mind paying premiums for someone handling their money. Often, people with large sums of money to invest by handing it to a financial advisor so they do not have to do the job.

Robo-advisors - online brokers such as Betterment and Wealthfront offer the ease of using an online broker. Robo-advisors are growing in popularity and can reduce the stress of knowing how to invest, when it's the right time to invest, and when to meet someone in person. With Robo-advisors, you instantly diversify into a large number of stocks and bonds, and your allocation will automatically adjust you according to your goals.

Investment applications - You may want complete ease and automation, such as not having to talk to anyone directly and not having to sit down in a matter to do any research. By using investment applications such as Stash, you can invest directly from your smart phone.

Direct mutual fund accounts - to avoid paying brokerage agency fees, you can actually buy mutual funds directly from mutual fund company. Having a mutual fund is a smart investment decision, but avoiding additional costs is a wise money move.

Unit linked insurance product – investing while get protected from various life risks? You can get both from unit linked insurance product

The key factor to be a successful investor is not always about the shares and funds you choose. Successful investment depends on the choice of proper asset allocation and persisting with an automated investment plan-in this way you can reduce the risk of making horrible and emotional decisions.