Debt Views

Establishing a small amount of money as investment capital may be a good start for beginner investors. The first thing most people think of when considering investing is the stock market or real estate. However, these arenas are quite crowded with professional individuals who know what they are doing. Also, the entry costs for real estate are prohibitive for a first time investor.

But, investment is investment, it need not be in a house, or to buy shares. The meaning of an investment is simply buying something with a view to re-sell it over a given time frame making sure there is a return.

This obvious fact is something many people neglect to realize. An investment need not have the legitimacy of the stock market or the credibility of real estate to be an investment. It needs only one thing. To give a return.

Compounding is what the goal of investment is while minimizing risk. The quicker the compounding cycle the better. Many investors work towards 30% per year and to these prudent financial operators, consider this to be an excellent return. But what about 30% per week?

Let me ask you this. Starting with just $100 could you find something of value that is under priced, like a push bike or a TV? Could you re-sell that item for $130 in the local classifieds? Could this be done in a week? Sure it can. The above ideas are legitimate investments simply because they create the investor a return. Compounding is what investment is all about. Making sure the item you bought is cheaper than its real value is the key and people sell stuff for their own reasons and often it has nothing to do with price. Starting with $100 at 30% you could reach $1 million dollars in less than 30 such transaction. Pick up a calculator and try it out.