Debt Views

When investing my money, I am always amazed at how complicated the procedures are. The unnecessary barriers that exist in investing capital can be seen as quite serious impediments. One of the biggest barriers is the broker commissions or the deposit size when considering real estate.

I am certain everybody with half an interest would be delighted to begin investing capital for long term rewards. Everyone loves the idea that they are going somewhere as time passes and investment brings that settling feeling. Knowing that your capital is working for you can be a real delight.

However the barriers to investment makes only the people with a large capital account able to invest. There are easier ways. First thing is we need to recognize that people earn a living from investment vehicles. That means there are costs. So for people with a very small seed capital account, investing in mediums where others make a living (like brokers, financial advisors and real estate agents) is quite the wrong direction.

These industries provide a certain legitimacy to the investment vehicles of the stock market or real estate, however, that legitimacy is seen wrongfully as security and a absence of risk. Nothing could be further from the truth. The truth is they are paid essentially to break us the bad news that investing can be risky. Not the other way around.

If we ignore the legitimacy of these institutional investment vehicles and look at the word investment without being baffled by the specialist language, we see investment is nothing more than spending money to get a return while making sure the risk is very low of losing the money. That is all an investment is.

If you want to invest, but only have a few hundred dollars, you will not make much of a return putting that money to work in a bank. At 6% per year you might make a few dollars. Not very exciting. However, link back to what investing means. It means buying something to re sell it later for a profit. The speed of your return is crucial. If you can buy something and sell it in a week, for a 10% or 20% return, well that is a huge accomplishment. If you have $200 and you buy something and re sell it for $230, that is a 15% return. This type of hands on investment is safer than the stock market precisely because you are in control of the money and making the decisions for yourself. You become your own investor source.