An investor is someone who commits a certain sum of money to an economic enterprise. In exchange for assuming a risk, he or she expects to earn a profit. Warren Buffett succinctly defined investing as “The process of laying out money now to receive more money in the future.”
If a profit isn’t guaranteed, why risk your money at all? It’s because if you invest wisely, the upside is worth the risk.
Regardless of how much you earn an hour, simply trading time for dollars has some serious limitations: you have to work long and hard; sacrifice your precious time, and deal with the stress of constant effort to stay ahead of your expenses.