Many people know how to earn money but not how to build on it. It is often said, the rich gets richer while the poor gets poorer. The reason is because the rich invest their money, making it grow, while the poor consumes money, which means spending it away. There are generally four ways to create wealth after you have saved sufficient money:

1.	Collect objects that will appreciate in value
2.	Buy real estate. Buying a house to live in is investment but buying more will allow you to draw an income from the rental.
3.	Buy stocks and bonds.
4.	Start a business if you have entrepreneurial skills. Here, you are bound to make mistakes but learn from them, work hard and if you have a successful business, it will earn more money for you.

Definition of Investment
“Investment is the act of committing a fund for a period of time to derive a required rate of return, being fully aware that there are risks involved. The point to remember is although the rate of return could be expected, it is not guaranteed.”

Depending on your risk tolerance, there are different types of investments.