[Glossary](https://pecuvo.eu/en/glossary/) · Investing # Investing **In short:** investing means putting money today into something that may produce income or rise in value in the future — with no guarantee, because its value can also fall. **Simply put:** Saving keeps money safe for near goals. Investing is for money you will not need for a long time: you buy a piece of a company, lend to a government or a company, or join a fund. There is a chance of more, but no certainty. So the order is: emergency fund first, then the goal, the time frame and only then a product. **Example:** Eva has an emergency fund covering six months of expenses. Separately, she sets aside €2,000 she will not need for at least ten years. Only those €2,000 are money she might consider investing; the emergency fund stays in an account. **Watch out:** money you will need in a few months is not money for investing — the time frame is too short to wait for a recovery after a fall. And the framework's rule: do not invest in what you do not understand. **Source:** EU/OECD-INFE, *Financial competence framework for adults in the European Union* (2022), topic 2.4 — https://finance.ec.europa.eu/publications/commission-and-oecd-infe-publish-joint-framework-adults-improve-individuals-financial-skills_en ## In depth in the modules - [Module 24](https://pecuvo.eu/en/modules/investing-the-basics/) - [Module 25](https://pecuvo.eu/en/modules/pensions-three-pillars/) - [Module 29](https://pecuvo.eu/en/modules/sustainable-finance/) ## Related terms - [Return (yield)](https://pecuvo.eu/en/glossary/return/) - [Diversification](https://pecuvo.eu/en/glossary/diversification/) - [Asset allocation](https://pecuvo.eu/en/glossary/asset-allocation/) - [Saving](https://pecuvo.eu/en/glossary/saving/) - [Emergency fund](https://pecuvo.eu/en/glossary/emergency-fund/) - [Compound interest (compounding and capitalisation)](https://pecuvo.eu/en/glossary/compound-interest/) - [Liquidity](https://pecuvo.eu/en/glossary/liquidity/)