What's your focus? Making pennies? Or Millions?

[Striver]

Even still, it's perfectly fine to lend people money and profit from it. Actually, I think it might be ILLEGAL to not charge interest on it. In the US, anyway...

 

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[ZCP]

Depends on the state and its usury laws. In GA it is limited to 16% APR if under $3k. $3k to $250k just has to have a written agreement.

 

[Striver]

Depends on the state and its usury laws. In GA it is limited to 16% APR if under $3k. $3k to $250k just has to have a written agreement.

I guess dad was a little over that at 300% per year, then! lol

 

[Mr.Brandtastic]

I used to think about things like, "What about taxes?" "What about finding a place to keep my small amount of money?" "Where can I get the best return?" "Can I outsmart millions or billions or other players?"

Blah Blah Blah.

I should have focused on creating great value first, not worry about what I will do once I get the money. Getting the money is the hard part, not spending it all like an idiot is the easy part (yet this is so hard for many to grasp). Use what little money you have to CREATE A BUSINESS.

 

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[kahem89]

At 1.000 USD with a solid 50% yearly ROI, it would take about 17-18 years to make a 1 million dollars. Providing you do not take out your money or loose them along the way. GG

Also one thing that always fascinated me, it takes 100% ROI to cope with a 50% loss.... 2008 anyone?

 

[MJ DeMarco]

I've had this discussion with people my age (23-25) about % returns. I said to them bluntly.. "I don't invest in anything that won't give me a return of at least 1000%." They look at me like I've lost my shit and immediately ask what the hell gives that kind of return. People say my thought process is foolish. I laugh.

I'm sure many of these people are all looking at you today and smirking. The stock market is up 25%! At this rate, I'll be able to retire by 55!

If anyone is looking at this market and thinking it's rationale and based on economic fundamentals, they're in for some serious pain.

 

[Najma]

Investment is one of the crucial decision to make. We need to focus on lot of factor before making decisions like investments. People get excited about the possibility of getting a big return on their money.

 

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[Max Gambit]

I just made up around 40% profit investing to bitcoin. Invested a month ago and yesterday I withdrew approximately $4k out of that deal.

 

[Santi M]

Focus on meaningful things that can be meaningful to your life

Thank you so much MJ for your advice, I'm learning a lot thanks to you and the people in this forum. I'm very grateful about learning this things at 16 years old, it will be very useful in the future.
(And this things aren't learned at the school!)

 

[Untamed_fast]

"I don't invest in anything that won't give me a return of at least 1000%." They look at me like I've lost my sh*t and immediately ask what the hell gives that kind of return. People say my thought process is foolish. I laugh.

I'm actually pretty impressed. What markets did you pull these 1000% returns from?

 

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[ChrisV]

My step father and I were talking about stocks one time. I think I made a eye roll when I heard about the returns of one.

He said “Well what would be a good return for you”

I said “100%”

The look on his face was priceless knowing I was serious.

Little did he know that in my mind 100% is a dismal, embarrassing ROI. I just said it because I was trying to be modest.

 

[Veloman]

Agreed, MJ.

The real moral of the story is that to make big money, you need to add big value (real and perceived) as MJ says in Unscripted . Investing small sums of cash should get a return, but it's nowhere as powerful as building a business that combines the resources of employees, knowledge and executing in a viable market where the outcome is value delivered.

Ever since I was a teenager I knew about the stock market potential, but always felt I would be better putting that 5 or 10k into a business of my own. If properly executed, the risk:return is vastly more favorable than passive investing.

To be fair, investing in markets shouldn't take much of your time (assuming you are not trading constantly, which is shown to be more risky). But is the opportunity cost worth it? If you're reading this forum, you likely want to run a business.

Think of cash as a resource. What's the tool that will do the most with that resource? The S&P 500 companies are so big that they can only grow at very small relative rates. You could buy microcap stocks which have much bigger growth potentials, but since you are not inside those companies, you don't really know what's going on, so the risk is also really high, they may lose value or fail. That's why putting that 5K into YOUR own new operation, the only you have *control* over, which could easily see 1000% growth each year for the next 5 years, has the highest ROI, and because it's your business, you know the risk and if you have followed the CENTS commandments, the risks should be fairly small.

Personally, I don't put too much into my IRA. I rather have the cash available for my own ventures.