The Important Difference Between Investing vs Speculating

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We’ve found out that most people who have trouble investing have these issues because they are lost on some of the terms they think they know but have a wrong definition that hasn’t been cleared up. Buy-ask spread is one term that gets confused. This is when there is a spread between what someone is willing to buy versus what someone else is willing to sell for. Trying to close this gap is your goal as an investor. CashFlow Tactics is about investing in low risk situations where you have access to the capital. Speculating is when you want to buy without the intent for resale or income.

Key Takeaways:

  • Investing is very simply when we part with capital that we think is safe and will pay us regular dividends.
  • Speculating is when we buy to use rather than buy to resell or to make a profit off of it. We’re expecting the thing we bought to make money over time.
  • In order to begin investing, you need to save money. The first place you can start is finding a place where you can save more than the inflation rate.

“To understand why we think it’s so important to hone in on the jargon of the financial world we first have to take a look at what traditional advice has been telling us all along. Their model insists on the saving and speculating approach.”

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