Asked on 19 Mar 2019
I am in the same situation as you.
And I choose 1) Invest in your own business
A bit of both is ideal, so I started in a bit of both, but now most of money is back into my business.
I have been doing business, have some successes and wondering whether to keep the income in stocks, or try to duplicate the success in other stocks.
Realised that I can probably increase my money more if it is in my own business than from buying stocks, I decided to expand and bought over other online business to run and manage.
What would you choose?
a) Stocks give you returns of 7-10% per year?
b) goods can sell for profit of 30%, if you can recycle your capital at least once a motnh, thats gross return of 30% per MONTH (net return probably would be smaller since you need to account for labour, rental etc)
Its a lot tougher than buying stocks and not do anything (stocks dividends are the only true form of passive income), but the returns are higher in your own businesses and skills.
If you are confident, go into your own business and skills.
INVEST IN YOURSELF.
If your online business is stable enough and you have no plans for expansion, you are much better off investing in bonds and stocks as it helps you increase your sources of income. In any unfortunate case, your online business might not do as well as before and shuts down, at least you have your bonds and stocks to provide you with income.
If you know your market, know your numbers, there should be a sweet spot where you can stay before you hit marginal return on money.
Not all businesses are scalable infinitely without changing strategies, even for online businesses.
The biggest investment would always be on your potential earning power. There’s a saying for entrepreneurs, “I give up working Monday to Friday, 8-5 to work Monday to Sunday, 24/7”
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This is entrepreneurial ...
obviously, when already started, investing into the company seem sound ( when you feel there is growth potential).
However, it could also happen that investing into equity could have a higher capital appreciation rate, who knows ...
Too vague of a question dude.
How confident am I in my business? What are my projections like, how are my competitors doing, etc.
I'll still make sure I move faster money to fast money to slow money eventually.
(Business - Stocks - Property/Bonds/Annuities)
But if business is doing well now, and there's lots of market share up fro grabs, I'll invest in my business.