If you have plans to start a dream business that requires a capital of $20,000 and you were able to make a savings of $15,000 which obviously isn't enough to start up the business, what would be your decision or advice?
1. Invest the $15,000 into a smaller business hoping that the returns will yield the remaining $15,000 in a short period. Note that this has the potential of failing and wasting the already-saved $15,000.
2. Keep the $15,000 while doing other work that will yield the remaining money over a long period.
Would love to see your input or a better suggestion apart from the ones I pointed out above.
N/B
This is the typical situation a friend finds himself and we are just brainstorming in what best to do.
If I will be given with such money , I will invest some part of it and then save the other half. I will invest it because I want to make it grow and storing it only in banks will give a small amount of interest only. I will take risk and invest it instead , the reason why I will save the other half is because I need to save for myself as well and it will serves as a backup plan when my business fails.