You have some extra money that you decided to save.
Where did you keep it?
- In your pocket?
- In your bedroom drawer?
- Under your bed?
You retained physical possession of your money, so this is your savings.
- Did you deposit this money in the bank?
- Did you place this money in a mutual fund?
Did you transfer physical possession of your money? if you did, you are investing!
You are already investing if you transfer possession (even digitally) because there is now a possibility that you may not get it back, second is that you are given a return (interest) for taking this risk.
Is depositing money in a bank "investing"? This is a very important realization because accepting that bank deposits are investments will make you more conscious on how much you keep on it because of the returns.
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