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.
There is both profit and loss in business so in order to do business you have to take risk. But on the other hand you have to make sure that the business you want to do has a high probability of success and you can do it. And in case of investment in any place, you have to keep in mind that even if you lose there, you can back up your financial position through an alternative means. And your total weight shouldn't consist of just one thing. You should make your investment in several places, it will reduce your risk and loss chances