April 19th, 2009 Posted in Business

Traditional Investment vs Small Business

I got really interested in traditional investments such as stocks, shares, bonds, savings etc a few months ago after reading Rich Dad, Poor Dad. When I did more research though, it seemed to me that I hand over my hard earned monies to someone that invests them for me, takes a cut and has minimal risk. This sounds ridiculously risky to me. Add in the fact that my return is likely to be 10% if I am REALLY lucky and that forces beyond my control would shape my “investments” it was looking less and less attractive. Then there is the fact that I could LOSE MY CAPITAL as well. Not good.

So if I invested £1000 in something or other, I could expect up to £100 interest over the course of a year? Rubbish. That’s not even worth me doing the paperwork for.

So instead of trusting my money to “experts” and hoping for a meagre return, I am just going to hold on to my money and develop my business. With my website business having low overheads and the profit being based on labour rather than trading of goods, I can make that same £100 in a few hours of web designing (even after paying tax on it) instead of POSSIBLY making that same £100 in a year with “investments”.

I realise there are some people out there that make a fortune out of the stock market and other investments, but in my position it is extremely risky and even in the best-case scenario would only return a small profit.