Topic: What would you do in this situation? Invest or save? (Read 1583 times)

If my dream business requires an estimated capital of $20k and I only have $15k, I will not start another business. Instead, I will use that $15k to invest in crypto. There's no guarantee in crypto investing but we do know that bitcoin so far has 100% success of growth every halving and the following year. And since bitcoin halving is already happening next year, I will absolutely start investing right now. I'll do a monthly DCA of $1k in bitcoin until its price reaches $50k. $500 monthly on ethereum. Maybe in the middle of next year, I'll be open to any new opportunities in crypto as well. In previous years NFT and metaverse made headlines so we better watch out on what's something new in this cycle.

By the end of 2025, I am expecting my crypto portfolio to surpass $20k. So by that time, the crypto market is expected to correct heavily, and it is time to start the dream business.

When we choose the right investment, we will surely get savings here, if the investment we allocate is right. That's why we should be careful when choosing investments, and we should also value our capital as to how it will grow.

That's why I prioritize investing first, because I can't save funds if I don't choose an investment that can produce profit for me. And that's what successful entrepreneurs always do, right?

There are several choices you can make if you are faced with this condition and if you don't have enough capital, forcing yourself to develop your business will certainly not make you grow. Currently, we will be increasingly left behind in terms of business development if we don't have enough capital because competition can bring us to a stage where it is difficult to develop it. It could be that you are trying to reduce the basic capital to start a business, but it depends on what business you want to run.

Another option when you have calculated the impact of the business may be to apply for a loan for insufficient capital needs and carefully you have an option at the start if the business does not grow quickly because every month you have to pay installments. Your own business plan can see opportunities because other people's suggestions may not be appropriate when applied to the business you want to develop.

There's nothing bad keeping the money, no need to rush but I see no need keeping the money when you can make profit from the money, most people are scared to invest their money they prefer keeping the money. There are other means in making profit from the $15k aside from starting a business, that money can be use to render loan for interest etc. In my own opinion I will prefer the person invest rather than saving the money $15k.

OP I will remind you this that there is no business on earth that is risk free. Every business engagement involves a risk whether big or small there is every tendency that there will be hurdles along the way but the ability to curtail such hurdles depends on how smoothly the business would scale through.

Of a truth no business started big as it is today. The big names and giants in the business world all started small and being consistent with their services. If one starts small it is not a bad idea that they would be making profit bit by bit and that would enable them be able to expound their horizons with the experience they have gained in the process of starting small. So therefore, I would advise that your friend split the money irrespective of any amount already saved to try that business and see how it goes in a small scale.

On the other hand, if  your friend finds it okay investing the other half of the money into Bitcoin that is no problem as long as your friend initially had the plans of waiting to complete the $15k to $20k I think your friend can be patient enough to try buying Bitcoin and holding for a long term while managing the little business already established and growing it up as the time goes on.
Buying and holding Bitcoin for a long time I know would yield profit for your friend  which would be a plus for him.

Starting a business needs to have spare capital from the beginning business plan. You cant start a business using daily expenditure money, because when you start a business, it means you already have financial security for your daily expenditure. Business has always possibility of failure, even it's a small percentage. You cant risk your daily use money, it could be harmful for your living.

Starting a business plan is not just about idea and capital / financial management. It also needs financial management for daily use money which is apart from business. This is essential for financial security of living to avoid unexpected precedent that could happen in your business.

If I have an amount like that, it would be better if I just put it in Bitcoin and then just hold it or put it in stocks. At least after 1 year, I'm sure that that $155,000 will have interest.

The good thing about this strategy is that I don't have to understand or have any hassles, which is also called because I will just wait for the interest on that amount of money of 15k. This strategy does not require any physical effort, but it can still be considered smart working, right? ?

I agree with your opinion, we don't need to rush to build a business if the capital we have is not sufficient for the business we are going to build, it would be better for us to keep the capital we already have and continue working and saving the rest we have. needed to build the business that we will build and also we can prepare well ideas about the business that we will build.

I'll keep the $15k and work to make up the $5k. There is no need to rush. It is a business just like a child I must take my time.with it to see it grow slowly and steadily. After I have gotten the 5k , I won't even quit my regular job. I'll Only do do when the balance sheet is looking good.

Not literally that you have to invest the whole $15k and expect positive result. If you wish to invest in bitcoin, just invest an amount that you can afford to lose knowing this type of investment has still high rate of losing especially if you're up for big and quick profits. You know, bitcoin is a long term investment so you can only expect to get profits after holding it for long term patiently.

Now, on the remaining amount from $15k, just keep it while you are working for another side hustle that will give you additional profits. I know if you work hard, you will achieve your desired amount in the long run. Just focus on your work while you are also working on your bitcoin investment, at least when the right time comes, you will have multi-sources that will generate profits for you.

Investment is all about taking risk because the return from investing in a company depends on the economy

When planning to invest in a company the productivity of the company should be checked first so you won't end up investing in a sinking ship and lose your investment.

The return on investment depends on the amount of shares/stocks you have in the company, the higher your shares the higher your return

But to have a large amount of shares you must be willing to put in a lot of money especially if the company is a lucrative one.

It's better to try than nothing, it's a good idea, I often hear words like that from many business people, basically even though you are very confident in whatever you want to do whether it's a business or investment that looks like profitable but still however the potential for loss or failure will definitely exist, I think there is no success without failure and that is a statement that is always carried by successful people. They have a good mindset and like the challenge of something bigger.

Failure is not a problem because on the other hand they will get very valuable knowledge from the journey in the process, and yes that's right buddy if I have a lot of money then maybe I will also prefer to switch to investing rather than having to save in the bank, although there is a potential loss in a certain amount but on the other hand I think if we have good planning and management and also have sufficient understanding in the field of investment I think we will be able to increase the percentage of profit to be higher than the risk of defeat, and there are some positive points as you said that with investment our money has the opportunity to grow in value and physically, it is better than saving and being exposed to inflation.

I will choose the first option because there is a risk that I have to take because I am still young. It is better to try or not at all than if I save my money in the bank, it will not increase the money but the money will sleep and be exposed to inflation. It is better for me to invest so that the money That works for me too because I also know that no investment is guaranteed to be profitable, there are risks too

Rather than waiting invest the $15000 in small business and it'll grow little by little. This means, if you're doing the regular work and takes 6 months to earn the remaining $5000 through the business you might be able to make $2500-$3000. If you have understood the market and managed well, this could be higher. Even it can be high above $5000, but the best part during this time period your business will be established. This means things could bring better revenue soon, so it is good to invest and start at the earliest than delaying.

Yes it is easy to make the 20,000$ since you have already made the 15,000$. But this depends on the time it will take you to make that extra 5k. If it will take you long about six months to save that amount from your monthly income then surely inflation will be against it. The value of all the money you have been able to save will reduce so much and by then the cost of starting that business will be higher. Which means you will be budgeting about 25k to 30k. This is as a result of increase in the price of materials and goods to start that business.

Buffet business success would really be still varying considering that there would really be factors on which you would really be needing to have for you to succeed into this kind of venture.
Like location, the food taste, ambiance, sanitary aspect etc... Success couldn't really be assured when running up a business but well it is really just that normal to risks out and as long
it is something that would really be getting in line with your own interest then it should really be just that fine. There are really just those people who cant really be able to take more risks
just because they are afraid of failure.

If we do speak on whats the answer on OP about on a situation on lacking up the amount then it would really be depending on risk taking whether he should be making some investment or business
but since he do have plans on having one but lacking capital or amount then its not ideal to run a business on which it isnt really that in line with your plan or passion. You would just simply fail.
The thing here is that if he do able to save up that big for a period of time then saving up more would be his best choice but if he's eager to start one already then
taking up some loan or borrowing would be his last option or resort.

Always see towards your interest so if you think that in certain business you are expert and you can do it well then don't think that it is a small business or large business. That business will be suitable for you about which you know everything.

It is obvious that if a person can save the amount of 15000$ then surely he can save the amount of 20,000$ because for fulfilment of dream one can do anything. But in such situations if you know that selected business will favors you and you can carry out this business well then I think wait for the rest of amount then start your dream business.

The annual return depends on your investment type and business type. There are also businesses and investments from which you can make 2x-10x profit annually but these on the other hand are very risky and some investments and businesses will give you 5-20% profit.  But neither investment nor business will guarantee you constant profits. Profit will depend on your management and sales. So how much profit you can make annually depends on how well you run your business or how much analysis you invest.

It’s easy, since I was the one that worked and raise $15,000, all I will do is to maintain my work and raise the remaining $5000. I won’t even try anything stupid which will end up causing me to lose my entire money, if you try to invest in smaller business, it’s might end up failing because that’s not really the business which you want to start, and don’t expect big reward within a short period of time. To me it’s very easy, just have patience and keep on saving, for you to be able to save that big amount of money, then $5000 should be a problem. The only thing that will make me ask anyone to change their plans is maybe they end up be fired from their work, or their job end up being compromised, and they can’t make more money.

I personally would choose the 2nd option because the 2nd option has a very small risk of failure compared to the first option which has a greater risk than the 2nd option because in my opinion the 2nd option is more flexible, we can do several jobs at once in a day, which can save us money. short time while collecting money to start a business