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Most of us look forward to a comfortable future. To get there, you've got to be smart about using your money to make more money.

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This is investing money in plain English.

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We know that putting money in savings helps you make more money over time thanks to interest.

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It's predictable and based on an interest rate.

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However, there are ways to make more money if you're ready to take risks.

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Consider this. You're here and you want to be here.

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You have a choice between two options.

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Going around the mountain, which usually takes five hours. It's very predictable.

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Or going over the mountain, which can shorten the trip to two hours.

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It may seem like an easy choice.

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You can get there three hours earlier by going over, but there's a catch.

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You might get stuck in the snow, which is a risk that can make the trip even longer than going around the mountain.

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The best way to deal with risk is to be informed.

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If you do your homework, like checking the weather reports, you'll have a better chance of making a smart decision.

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Now, of course, I'm not talking about getting from town to town, but reaching your financial goals.

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Having a savings account is predictable. It grows steadily with interest.

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Investing, on the other hand, can grow your money much faster, but there's also a chance you could lose some of it.

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There are many ways to invest.

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Let's say your friend is opening a coffee shop.

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She needs money to buy the beans and supplies.

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Because she can't afford everything, she asks people like you to be investors.

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You can see that this is a big risk, but you do the research and find that a new coffee shop could do very well.

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So, you give her company money, and you become an owner and a tiny part of the company.

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That bit of ownership represents the money you invested.

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If the coffee shop business is slow, the value of your investment may shrink.

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But if the coffee shop is successful, your investment could grow with the company.

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It may take time to see the outcome, but you've bet that your money would grow faster in an investment than the modest earnings in a savings account.

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That's what makes it risky.

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It's hard to know how an investment will do over time.

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The same is true for the stock market.

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When you buy stocks, you're buying a tiny portion of a large business and betting that the business will do well over time, increasing the value of your investment.

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Now, the stock market and private businesses aren't the only kinds of investing.

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Let's say you'd like to invest $500.

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You find antiques that you believe will be worth more in the future.

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If you're right, you may be selling them for $750 in a few years.

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If you're wrong, they may be worth only $400.

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By investing, you're taking a risk, and you have to be ready for both outcomes.

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Whether it's a friend's coffee shop, the stock market, or antiques, the big ideas are the same.

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Savings accounts are predictable and may be a good choice.

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But if you're ready to take the risk that you might lose money, you could put your money into an investment that has the potential for a much bigger payoff.

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Investing is serious business, and every investment comes with different risks.

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Do your homework and discuss your plans with a financial professional before getting involved.

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If you plan for the long term, you may find that a comfortable future isn't too many years away.

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I'm Lee LaFever, and this has been Investing Money in Plain English.

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