Topic: What would you do in this situation? Invest or save? - page 10. (Read 1583 times)

Personally, I would start my business in minor scale. There is a 25% difference between desired bankroll and currently real bankroll, but that must be manageable. Do your calculations again and try cutting expenses for now, so your plan fits the 15,000$ you have. Or, you can borrow money from someone to complete the 20,000$... That involves some risk, but since we talking about investing into an asset, which will generate profit for you along the time, it might worth. Just make sure to never borrow money to invest in liabilities.

Context lacks a lot imo since it's for a friend. We don't exactly have their situation at hand and what said business actually is. Look in my case, my dream business would be something along the lines of a game studio, and assuming that the needed ratio (75% on hand, 25% still missing) is pretty much the same as what I need (since game studios should be a lot more expensive than $20k), I'd definitely go doing both 1 and 2 since game studios don't exactly give immediate profits, unlike say cafeterias and the like.

Ofc, this could be remedied by sorting out your finances and splitting the money you get so that you can party invest and partly store your money, but again, depends on context. If we assume we can't do both then yea, I'd go with 2 instead, especially if you consider your words "over a long period", so I'm assuming that at the very least, that $5k can take a long time to be earned, what more that $15k you can lose.

Investing should always be done with an eye and have a plan B. After all, often things do not go as the investor expects. And sometimes the chance to get a big profit appears when there is no money to invest, as all the money has already been invested earlier. This is the so-called mockery of fate.

I’ll like to point out something I find valid in respect to the situation and that is,
1. This individual is employed somehow to keep earning.

Now, that’s reassuring that with or without the investment, the indigo has hot some means to finance his or her needs and wants and as well gets to save.

Okay, I don’t know what’s your definition of a long term or what sort of business this fund would be redirected towards but, if saving is the idea, then I wouldn’t advice that to be done in fiat. Nope! Your friend could at least buy bitcoin now and have his money save in an asset of value and in expectation of a bullrun.

On second thought, if taking risk in starting a small business of his or her own is high, he could as well invest in petroleum by providing liquidity for a branch that offers the services as, petrol has proven to be a much needed product that tends to move. There surely would be returns but, under good management as well.

Other options could be, importing scared items and having it sold in places of lack. Find market for that wouldn’t be difficult and the income would be accumulating.

Between investment and savings, both are very important things to do, but their roles are different. Investing in a business that we started ourselves is a good thing for us to do so that the small amount of money can continue to "spin" and make a profit. It is not important how much capital we spend, the most important thing is that it is a small step that we start to achieve great success compared to you can just plan without starting anything.
However, apart from that, we also have to pay attention to our personal savings to answer a problem (an urgent need) so that the money we invest in a business is not disturbed by this urgent need.

You have already listed the two likely solution and all other responses would be drawn from those two. You either save and continue to work to complete it or like you said to invest it and expect to complete it as the profit comes but I won't advise you to go invest in a small business first because the business may drop with the effect of inflation.

My own advise though which should be the third of what you have listed is you can go for loan. My advise for loan is because you are already close to the needed sum of money for the business at least you already had around 75% of the capital. And if you are not investing in crypto it is better at least you can monitor the business physically. To take 100% loan for business or investment is not a good idea but if you have more than half of the capital and you believe you have a place for repayment if incase the business fails then you can go on, at least you can resell some of the structure or material to repay the loan.

Just looking at the limited information you gave, I would definitely find a 5k loan and start that dream business. I would go into this business aware that the risks were high though. There is no guarantee that you can increase your money by using it in other ways, on the contrary, your money may decrease. Instead of getting closer to your dream business, you'll be moving away from it. I would do anything to start this business without wasting any more time. What I would do would be to borrow money from friends and look for a low-interest loan opportunities before taking out a loan with high interest from bank.

Investing in a smaller business when you know you can't meet up the required amount is not 100% certain that you might get that expected amount, like you said it has the potential of failing. So to me I'd say you get a loan to meet up the amount for that business, and before taking such loan you have to make sure that the investment would be profitable. Like we all know, in business you never can tell how the outcome would be like until that investment has come to a conclusion.


Sometimes the investment can be the type that has a short period of time so while doing other work it might take time to get the remaining money. In such situations what can you do to meet up? 🤔

Physical business requires your presence, money and time. This may not be the best option for many of us because it requires great management and leadership skills which most people don't have. When investing in bitcoin, gold, land, stocks, it doesn't require your physical presence. So you can participate in other activities when investing in those assets. Physical business and buying assets both have their own level of risk.

The problem with your question is that it distracts people from the fact that you can choose between the two. Saving and investing two halves of the 15 grand you got will not only provide you with a pretty okay-ish safety net that you could rely on should your venture fail, it would also open you for opportunities to start said venture without having to force yourself upon it. You can even argue that investing on the stock market or crypto would be a better idea instead of investing it in a small business since the low entry cost and the higher propensity for earning means you can save as much as 10k while invest the 5k with the prospect of still earning good money. Sometimes you don't have to choose especially if it's about money-making, sometimes taking the middle pathway works best.

Investment is not something we need to do with funds we have, we can always split it and use part of the funds to invest in Bitcoin and other cryptocurrencies so that we can earn some profits too. I always tell to never underestimate investing in physical business because that would make a lot of sense so as our crypto investment keep getting mature, same will our physical businesses will keep growing so that as we are making money from the two side, we can also think of investing in other businesses to earn more too. Anything can happen in the Crypto world just like last time when the crypto market crashes making people to make severe loses.

If I will be given with such money , I will invest some part of it and then save the other half. I will invest it because I want to make it grow and storing it only in banks will give a small amount of interest only. I will take risk and invest it instead , the reason why I will save the other half is because I need to save for myself as well and it will serves as a backup plan when my business fails.

It's better to be sure than rush things out without any assurance. There will still be enough time to save up to have enough funds for a certain business. It would be better to be well-ready financially before you put up a business. You can still grind harder and earn better to reach such an amount.
You don't need to hurry and while saving, think of the best strategic plan so your business would be successful in the future. There's no need to rush if as long as you are working hard to make money and savings.

I will go with the second option, I will keep the money first and not risk it in some business or something that you don't have total control of. You have taken steps already to save enough money for you business, so why not just wait for a couple of months hard work?

For sure once your got to that $20,000 and start your own business, it's going to be worth the wait and all the hardship that you have done. And at least everything is up to you, on your shoulder on how you will become a successful businessman.

In my country, if you have 15,000 dollars and want to make 5 thousand, then you need to buy goods that are in demand at a discount or on the wholesale market and resell it. Accessories for mobile phones are selling very well everywhere and you don’t need to buy $15,000 worth of goods.

What did your friend do on the way and successfully save $15,000 savings in the process? Just continue to do the work and sooner or later, the $20,000 target will be achieved. Less risky since if that amount is put into an investment, expect a rough and tough road to reach the target as it depends on what kind of investment your friend should choose, and the worst, that capital might be wrecked in the process.

Slowly but surely, just save that $15,000 and continue the usual work your friend did reaching that amount in savings.

A dream business don't need to be rush.

How long is that the long period that you are talking? How long you have been able to save up and reach that $15k savings that you do have?
If that lacking $5k wont really be taking up several or couple of years then it would really be just that better that you should really be saving it up and would really be that doing that business on what you do have in mind.
Tending to make use of that 15k on a business on which it turns out to be your reason on generating another 5k then it would really be prone to errors and might ended up on a loss. Why you would really be that too desperate on doing such move or thing? Doing business on which it is really that out of the scope of interest of yours is never been recommendable or appealing in the first place.

On the time that you do make out such decision or act, then it would really be just basically shows on how desperate you are on making money and this is something that you should really be needing to think twice.
If you could be able to afford up such risks with that non planned business then go ahead since its your money but if you do mind or boggle about the risks and also getting in line with your interest
then its better to save up more and build the business on which your heart and mind is really pointing into. There's so much difference in between two.

You shared exactly what I had on my mind and was going to write, but I was also going to talk about where you should invest, It will not be investment advice but a suggestion so please DYOR too. I would say, Invest in BTC for the long term. Because OP was saying it is hard for his friend to make $5,000 and it will take him some time to save that much money. Like a long time. If that's the case, then simply invest some of his savings in BTC and wait for the long term.

Like doing holding, you will be earning on your investment while you will be doing the work and making savings too. In this way, you will have more than one earning source and the amount of $5,000 will not be that much hard to make. If your friend is not a BTC user or does not trust it, then tell him to now trust on ALTs too. Because ALTs are way risky.

Tell him to, find a way which in his own thoughts is good and he thinks that, this would make him some money. But every good business need huge investment, so to start a small work, OP should use his smartness.

starting a business this days has several challenges talk of policies and other factors so some just have to be careful while going into any business and also doing proper research of what you are going into is also good proper DYOR can save you from a lot of business risks, looking at the amount you want to invest is a lot of money 15,000 dollars if properly managed and well invested it will actually bring profit. in my place if you want to start up a business and you consider a supermarket or store a lot of people are already into it so you might have lesser patronage.

Every business has their ups and down but I feel agriculture is still one of the best since is something people can not do without and there is always demand for it, even if the economy is not favoring business, and looking at the value of the dollar against the currency of the nation then there will be a lot of of rethinks.

I would say start a small business with $15000.  Profit should be taken out of money without depositing it. By starting a low risk business you can start a business and earn profit from it. Again you can save money from that profit.  Starting a small business will take as little as $15,000.  But it also has risks. If the business flops, capital can be lost. For this you have to have all those business ideas inside, you have to continuously innovate in the business. It doesn't happen if you don't take risk. If you want to shine in life, you have to take risk. It is better to invest it in the right way instead of saving 15000$.  It won't take you more than 20000$ through investment.