There’s a very good chance you already know about investments, but we’re going to answer the question „What is an Investment?“ in our blogpost so that we can answer another question you might have if you’re online at all these days. A lot of people have been talking about Social Investment Network, but not many people know the truth about this new financial opportunity.

Photo credits: Social Enterprise Network

What is an Investment?

As mentioned, this is a very basic question, but you need to make sure you know the answer in order to understand social investment networks. Basically, an investment could be described as, „the action or process of investing money for profit or material result.“ Sounds simple, right? Well, it is at its core, but there are still a lot of risks involved.

While you may know that a certain type of investment – like a savings account – has a set rate of return that’s safe and consistent, there are a lot of other investment opportunities that come with greater risks and greater rewards. It’s the chance of earning even more money that causes people to take the risky investments.

In the past you could read magazines, watch TV shows or even research on the Internet on your own, but this came down to trusting the sources of the information you were gathering. Getting tips and techniques from just one or two sources is not a really good idea. This is one of the reasons social investment networks are starting to become popular.

What is a Social Investment Network?

Now that you have a refresher on investments, we’re going to talk a little bit about something new for the 21st century. First, it’s important to understand that there’s risk involved with any investment. The actual amount of risk will vary from situation to situation, but it’s something that you need to know so that you can make a wise decision about your money.

A social investment network is a social network of investors that help each other. One of the problems that some people see with this is that there’s already enough risk involved with investing. When you add a social layer to the equation, you’re adding even more risks, which can be detrimental if you’re trying to actually make money and not lose it.

Is a Social Investment Network Right for Me?

This is a good question! If you understand the basics above, there’s a very good chance you’re going to benefit from a Social Investment Network. If you have experience with one and would like to share, write us a comment and let us know what you felt about adding social media to your investment strategy. Did it work out for you personally?

Written by: Jenny Corteza knows a little bit about ver 60’s cover because of her mother. There was some bad information spreading on the Internet about her, but she went to repwall to get help from professionals.