| Establishing a small amount of money as investment | | | | minimizing risk. The quicker the compounding cycle |
| capital may be a good start for beginner investors. | | | | the better. Many investors work towards 30% per |
| The first thing most people think of when considering | | | | year and to these prudent financial operators, |
| investing is the stock market or real estate. | | | | consider this to be an excellent return. But what |
| However, these arenas are quite crowded with | | | | about 30% per week? |
| professional individuals who know what they are | | | | Let me ask you this. Starting with just $100 could |
| doing. Also, the entry costs for real estate are | | | | you find something of value that is under priced, like |
| prohibitive for a first time investor. | | | | a push bike or a TV? Could you re-sell that item for |
| But, investment is investment, it need not be in a | | | | $130 in the local classifieds? Could this be done in a |
| house, or to buy shares. The meaning of an | | | | week? Sure it can. The above ideas are legitimate |
| investment is simply buying something with a view to | | | | investments simply because they create the investor |
| re-sell it over a given time frame making sure there is | | | | a return. Compounding is what investment is all about. |
| a return. | | | | Making sure the item you bought is cheaper than its |
| This obvious fact is something many people neglect | | | | real value is the key and people sell stuff for their |
| to realize. An investment need not have the | | | | own reasons and often it has nothing to do with |
| legitimacy of the stock market or the credibility of | | | | price. Starting with $100 at 30% you could reach $1 |
| real estate to be an investment. It needs only one | | | | million dollars in less than 30 such transaction. Pick up |
| thing. To give a return. | | | | a calculator and try it out. |
| Compounding is what the goal of investment is while | | | | |