All investments are not equally important. Basic investment needs must be fulfilled before others.

If we put our saved money where it will grow, then that's investing. However, there are a number of possibilities available when we want to invest and it is not possible to make choices without having a way to classify things.

Let us not jump into classifying investments right away. Before we do that, we need to classify our need for making an investment. Investments can be made for a huge variety of needs. You could be saving for emergency medical funds which are usually required at a moment's notice. Or you could be saving for your retirement which is a few decades away, or anything in between.