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Understand the Definition of the Term Investment

An investment is a current commitment of money or other resources with the expectation of reaping future benefits; however, a sacrifice could be defined in much the same way. Members of the Church of Jesus Christ of Latter-day Saints could even interchange the two terms because both sacrifices and investments involve giving up something now with the expectation of gaining something more important in the future.

We make investments in many areas of our lives; important investments often involve education and skills, knowledge and friendships, food storage and emergency funds, and finances. For the most part, we will be working with financial investments in this course—stocks (or equities), bonds, cash, treasury bills and notes, options, futures, and so on. However, we will make reference to other important investments. It is important that we have a broader view of what an investment is so that we recognize those investments that are of most worth—those that bring true joy in this life and in the life to come. You should have priorities when it comes to investments, and the most important investments you will make involve your family and your testimony of the gospel of Jesus Christ. The prophet Jacob counseled: “Wherefore, do not spend money for that which is of no worth, nor your labor for that which cannot satisfy.” (2 Nephi 9:51)

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