Topic: What would you do in this situation? Invest or save? - page 5. (Read 1566 times)

It totally depends on the situation and the condition of your friend at the moment. If he is doing okay, has a job that covers almost all the expenses he has, and can do a bit of saving every month, I would obviously suggest that he waits until he has the complete budget to start his dream business because he probably has been planning it for quite some time and when you do something that you are interested in, you put in all your efforts to make it successful.

However, if he is having difficulties with his income and wants to do something of his own as soon as possible, maybe he should go with option one where he would start a smaller business until he earns enough to start his dream business but that would obviously take more time, and it also depends if he has enough confidence that he can actually do something that will earn him money and won't waste his savings on it without getting anything.

But do you think inflation could increase so quickly that his $20k would instantly lose value? If he can work hard for 1 year to earn an extra 5 thousand dollars, do you think inflation within 1 year will cause the value of 20 thousand dollars to decrease significantly?

$15k is too little to start a business because you not only use it to open the business but also need to have calculations such as capital reserves to maintain the business as well as additional expenses. For me, starting a business with only 15k USD is really risky, we will even lose money quickly before thinking about profits.

The question is, doesn't a business that requires $20,000 in capital also have a chance of failure? because in my opinion all businesses have the same chance of loss and profit, so it's not just businesses with smaller capital that will have the opportunity to lose.
If you don't feel comfortable choosing the first option then the second option should be the one you choose because forcing you to keep starting a smaller business but you know you have a chance of losing will probably lead you to regret, whereas if you force yourself to stay with a $20,000 business but borrowing the shortfall is not recommended. because you will be under pressure to make profits quickly so you can immediately pay off your debts

I'd like to take the safe side and that is to keep the $15k while doing other works to reach the required amount for my dream business. It might take a long period as you've said, but I think there's also other way to maximize the profit, right? Don't stick to just one work, look for a side hustle or other opportunities so it will not take a long time to fill the required amount.

Because using your $15k for small business is a risky thing to do. The returns are not guaranteed therefore if the result is worse, it's like you just wasted your money and of course your effort to save such amount just to build your dream business. Well anyway, if you're prepared for the outcome regardless if you profit or not, then go for it. In the end, it depends on the person's guts and determination. The saying "no pain, no gain" is suited if you'll take risk.

Passive income is what we are all looking for, but how to create passive income, not too many people can do it. If you had $15k, where would you invest it for passive income? What is your plan because it is easy to say but not easy to do? Furthermore, investing is always risky and if you only have $15k as your only savings, are you willing to lose it to invest because there is no investment without risk. One more thing, what will you do in an emergency if you have no savings because life is always full of surprises? That's why saving is something everyone should have.

having passive income is awesome but don't forget getting one is rather difficult, even those bluechip stocks aren't a guarantee that it will turns out as you expected instead it might be decreasing in term of value therefore lowering your capital.
I personally always try to find passive income but man, the only passive income thats worth it is when you have at least more than $100k invested and then we're talking, less than that basically you're just wasting your time and money.
nowadays big capital comes with many advantage that smaller capitals don't have.

Depends on the goal of OP. If he targets to multiply the money, then OP needs to put the money in the business field that possibly earn good profits. But if OP only wants to secure their money, save the money on the reputable banks isn't a bad idea.

As far as I understand what OP stated, he still couldn't start his dream business because he needs more money (about $5,000). OP can collect more money from his jobs gradually, he has the option to keep his current funds only. But if he is brave enough, he can use the current funds to get more money. It depends on what OP is more interested to do.

Don't forget to consider the risk, dude!
You put your money in banks or in gold, will be more secure than you invest in crypto coins. Crypto coins have high volatility in the values, it is not secure enough if OP wants to take the money at any time. But if OP wants to put the money on crypto coins for few years, it is okay to choose crypto coins. However, make sure that OP knows well crypto investment and how the market works!

When you are determined to do something, the hurdles that come in the way won't make you lose focus, so no matter what you are doing on the way to make things work better, your eyes will always be on the destination. So, if you have a goal to start a particular business but you lack the budget, you can always work your way up there and I don't think that the works or small businesses that you do would make you forget your actual goal or target.

The priority should always be the main goal, but to reach that target, one might need to go through a lot of things, and as you said, if one knows that they can actually make things work if they venture into things that will help them reach their goal, they should definitely go for it but only if they know they won't mess things up.

Getting some partnership just to patch up to those amount that you are lacking wont really be that a bad idea if you are really that in a hurry on building or launching up such business on which you could really be possibly be able to get some possible partners in business but it would really be entirely be depending on the business idea since not all would really be that just simply agreeing on funding up some business or having partnerships on something which turns out to be that not that in demand or the interest is really that low. Investors or business partners wont really be that too dumb not to make out some studies first before putting up their money into some business with along with other co-business or investors and on the other hand on which there are people who dont really like on making partnerships or corporations but rather they would really be that preferring on being sole proprietors rather than on having multiple-owners on which i could say that it do really give out some headaches on some matters and this is what i could say basing up with real experience. This is why it would really be that always important that you should really know on how to make yourself that handle when it comes to this aspect and never ever make yourself do make out rush decisions because we know that capital or
money isnt something that easy to provide. Basing up on the situation above then its better to avoid loan or borrowing money and if partnership isnt your genre then better to save up and wait for the right time.

It can be hard to find passive income if you invest that $15k wholly. It could be from interest deposits of platforms but there's the risk that you'll take from there. But if you have an idea of where you'll put that safely, that's so much better. That's actually the best life when you've got passive income and you have your salary from your day job.

And don't forget about the inflation. When you put your money in savings and there's inflation, the interest rate that you'll earn from that deposit won't even be enough to cover the cost of inflation and that's why it is not the best option. It will only be the best option if you are going to treat that money as preserved for some unexpected events.

Option number 2 is actually also risky because of inflation. That is when the $15,000 is saved for a long period of time and we try to earn income until we have an additional $5,000 to cover the shortfall so that the amount becomes $20k. then I don't think this is true. Because when we have managed to collect $20k then it could be that at that time to start a business it won't be enough with just $20k because of the decline in the value of the currency or because of inflation which makes everything rise drastically. So if you start a business with $20k now, it's not certain that next year $20k will be enough to start the same business.

So using the $15k to invest in a smaller business would probably be much better. Everything is risky but behind the risk there is always the potential for profit.

I’d say invest a portion of it to another investment in which you can assure profit or atleast will be less risky. I won’t suggest pushing the amount to your dream business especially if the $20k assumption has its substance or basis. Saving it up would also be a good thing to so especially if you know to yourself that you can atleast maintain the amount for a long perood of time and won’t be tempted to use it to other things. Investing some of it in this industry would be good but always gauge the risk given that no one knows when will recovery take place if ever a sudden dump will happen. It simply  depends on your circumstances and capabilities as an individual. Forcing things won’t do you any good so better stick to your plan unless necessary of if you would have better options.

Also, with your dream business, always check its potential qhich is changing over years. Perhaps with saving;it’ll take some time and once you reach the target amount, would it still be good to actualize your dream business?

I say you do both and divide the assets into appropriately-sized portions depending on your risk appetite and how well you’re able to win investments. 60/40 in favor pf saving money if you’re someone who’s a little too scared to invest still in the world of cryptocurrencies or any form of asset for that matter, and then just tweak that depending on ur preferences. In cases like these I don’t really suggest pushing for a one option only route since it shuts you off to the benefit of the other when you can easily take in both and maximize your profit potentialby a large margin. False dichotomies like these stunt your growth as a crypto investor, you should onow that by now.

While both of your proposals make good sense and are actually good ideas, I'd go for the second one in this context. Starting a business by accumulating debt to make up for the missing amount needed to launch the business is never a good idea, specially since we are talking about a start up business wherein the earnings and growth potential is still unknown. Now you may argue that we can predict it based on research and asssessment but that will be another risk that will be on top of accumulating debt. Instead of having to rely on debt for the missing amount, why not find someone that will be willing to invest on the target business? With this option we wouldn't have to owe someone anything to launch the business but instead have an investor.

While of course this is just my opinion, I'd love to hear your take on this.

OP, the subject you mentioned here is mainly about business, and you also discussed here that you failed in the business area. I see you started business with lots of money and failed there only because of your lack of knowledge. Since you have a lot of money, if you invest it well, it will never be a loss. Also, your biggest risk here is your lack of experience, if you had better knowledge, you would never have taken such a big risk and failed. Also, if you want to gain experience, then definitely keep working slowly and keep doing business. First of all a person does not have experience in that business, if he works slowly his experience increases, and he does not fail in the future. So I think if you start the business with small amount of money and increase the amount of money when you get experience in the business field. It will be profitable for you to invest this extra amount of your money when you are a well-informed and experienced and skilled trader.

It is quite eazy to go along with the plans of creating a business, it is not a must to have the total amount before building an investment that will profit you, however, there are other business men and women that doesn't have even up to $10k but still there businesses are doing well, it is better to make a move with the little that you have instead of seating down and procrastinating.

It is better to use the ones you have to start your own business than to borrow money to start a new business, businesses are not guaranteed to be profited all the times, mostly new businesses don't bring profits at first, people will like to know the kind of service you offer, but if you want to be profited in business you must have to be doing promos all the time as the business is just a fresh business.

Yes, if profits are not coming from any business we do, that means the business plans are not properly arranged, but however, before starting a business, you must have the mind to risk the money you have.

Keeping the $15k to do other jobs might be okay but what I have to say is that, we must start from somewhere if we are really serious about what we want to do.

However, I believe you have gotten enough answers to your question, so using one of these answers that's provided above will help in such situations.

This is a very common question and it is no longer a secret that money brought into investment will provide benefits to the owner of the money if the investment is good and profitable enough. Because everyone already knows after seeing more examples that saving money will not give them more money but only the amount they save. So the investment option at this time is still a pretty good choice because every year the number of people who become investors is also increasing because they know that investing is a good job to get profits from the money they have.

Use it if you already know more about the ecosystem through the crypto business and don't forget that you also have to understand the risks because often people who are too enthusiastic about the crypto business ignore the risks that can arise through the crypto business. Because you dare to seek profit through the crypto business you also have to be brave enough to face the risks involved, while saving money in the bank is clearly not for profit, other than just looking for security with very little risk.

Investing the money is not a bad idea but due to the short period of time might be problem. Because when it comes to business, you dont do it in a haste knowing that any slight mistake or miscalculation might crash the business. And like you said that the business is a 50/50 business, scince the success of the business depends on the nature, type and how well you managed the business. If so I wouldn't suggest you go into the business because that your frined seems to be the first time he wants to go into a business so he dont have much idea unless he has been into business previously and he knows the business that he would that will profit him asap.

As long as he has  a means of taking care of his expenses then waiting wouldn't be the worst idea either. But this depends on where you store you money. Because inflation increases more and more so scince its your holding it for a long time the value of the $15000 you saved might  go down drastically and by so doing the thing you needed to use the money for might get high which means you can do it if you dont have more than enough during those holding period.

Why would that be the only choice though? If I had that opportunity, I would invest that 15k in something that generates me a passive income and I get to keep doing my day job knowing that I don't have to worry about living paycheck to paycheck. Saving isn't really the best option because that means that the money would be stagnant unlike investing where if the investment that you've got is like a blue chip, you can expect a return albeit it depends on what investment you've put that money on.

The decision process may actually vary depending on the earnings and growth potential of the targeted business. If the main target, which is the growth of the business is a process that will take time but provides earning potential, the missing amount can be completed with debt without applying both options and the business can start operating as soon as possible. Although this option doesn't seem to make much sense at the moment due to debt interest rates. It would be a good option to speed up the process depending on the earning potential of the business.

On the other hand, if it is possible to quickly amortize the investment made with existing capital a smaller business can be established beforehand and capital can be collected for the planned business with the income obtained from this business. Additionally, depending on the earning potential of this small business additional capital can be obtained by selling the small business after the establishment of the planned business.