investing with little money
Some of the biggest fortunes in the world have their origins in little money invested into the original investment idea. How these investments usually work out is that the investor has human capital (an investment idea) and/or "sweat" equity (works hard to improve the investment outcome). Some financial market investment ideas do not require a lot of capital, but carry a high degree of risk and high potential rewards. These investments are based on leverage, where you can borrow a lot of investment money against little initial investment capital. However, if the investment goes sour, as it might, the potential losses are leveraged too, meaning the losses are boosted by the borrowed capital, and may vastly exceed the initial capital. Therefore, any leveraged investing, such as investments into the futures markets, are best left to professionals or done in close co-operation with those professionals. Even then, nothing guarantees success. Investing with Little Money - Business VenturesWhat many do with little money investing is to invest it into business ventures that may carry high potential rewards, but limit the potential losses to the initial capital. This may mean investing in the stock market, but oftentimes it means starting a business venture in corporate format. There are many books out there that have details on how to plan and start a business with little monetary expenses. Starting is not the problem usually, the problem more likely is to find an area of business that carries potential enough to start a venture in that field. In the online age, many are starting online businesses, where the start up costs are typically minimal, but the potential rewards are boosted by the potential that comes with millions of people using the Internet globally. |