Debt Views

Most people, on some level want to invest. It is a genetic disposition that is connected to 100′s of thousands of years of hoarding for winter cold snaps. The idea of saving something for a rainy day is the basic attitude, however investing is different. Not only would we like to have something tucked away, should we ever need it, but also, it would be nice if we were paid or compensated in some way for the time period we resisted spending that money. It is a fair expectation, that you get some form of reward for going without other things for the sake of holding onto saved money.

The most typical form of investment available to the majority of people is the humble bank deposit. By far the most common form of investment people have been exposed to, you put your cash in a bank and the bank agree to pay you an underwhelming 6% or what ever the current over night cash rate is. To be sure, this type of investment is very safe. You have every expectation, that after the agreed period, you will get your money back and a few percent on top for the use of that money the bank had over the time period.

Of course, just $25 dollars can be a challenging amount to invest. Over the course of 12 months, a few percent you may get around a buck in interest reward. (Don’t go out and spend it all at once!) However, you can also spend that same $25 on for example, 10 boxes of “Bic” pens. Go out into the street over the course of a day, and smile charmingly at strangers selling those pens for a total profit of say $50 That is a 100% interest rate. It only took a day! That type of “hands on” investment can be reproduced on any seed capital level you are on.