Personal Development for Smart People Forums - View Single Post - How to invest $1500 to generate passive income?

Ilya · 11-29-2007, 10:07 AM

$1500 is an awkward sum of money.
It is way too small to start business using someone's time. At the same time it is excessive if you spend your time but use the free tools (for example to start an internet business). You'll need about $10 for domain and nothing else. $100 will allow you to splurge on hosting, maybe a professional logo. After that, the costs will skyrocket and quickly eat up your savings with no money back guarantee.

If you know that you are going to start a business soon, you may want to keep your money close in case your business thrives and will be able to give you a return on investment on that money. For example, if you sell something, you might need the money for buying advertisement. But only after you make some sales for free.

Your decision to start a business should not depend on the availability of $1500. Also if it is going to be your first business, I wouldn't expect you to need the money for the first 6 months or so.

With all that in mind, I'd suggest the following options
1. Invest the money into education. Identify some area of your life where you feel you need to know something or to gain more skills in order to move forward. Try to go to a seminar, rather than to an internet-based education, or e-book. Unfortunately, most of the current paid internet resources provide very low value for money in terms of skill building. The information however you can find for free.
2. I had a financial advice here, but edited it out. instead read point 3.
3. Don't trust anyone online to give you financial advice and go find a good financial adviser with all the credentials and licenses that he must have in order to practice in your country. I'm not such an adviser. It may very well be the case that you will be better off paying off part of your debt or keeping the money as an emergency fund. Any sound financial advice can only be given after the careful professional analysis of your current situation.

In any case, saving $1500 is a great achievement in the modern consumerist world. Congratulation. Keep doing whatever you did to save the money, invest wisely and very soon you will be financially free. Good luck, theonlyguy!

11-29-2007, 10:07 AM	#4 (permalink)
Ilya Senior Member Join Date: Nov 2006 Location: Moscow, Russia Posts: 452	$1500 is an awkward sum of money. It is way too small to start business using someone's time. At the same time it is excessive if you spend your time but use the free tools (for example to start an internet business). You'll need about $10 for domain and nothing else. $100 will allow you to splurge on hosting, maybe a professional logo. After that, the costs will skyrocket and quickly eat up your savings with no money back guarantee. If you know that you are going to start a business soon, you may want to keep your money close in case your business thrives and will be able to give you a return on investment on that money. For example, if you sell something, you might need the money for buying advertisement. But only after you make some sales for free. Your decision to start a business should not depend on the availability of $1500. Also if it is going to be your first business, I wouldn't expect you to need the money for the first 6 months or so. With all that in mind, I'd suggest the following options 1. Invest the money into education. Identify some area of your life where you feel you need to know something or to gain more skills in order to move forward. Try to go to a seminar, rather than to an internet-based education, or e-book. Unfortunately, most of the current paid internet resources provide very low value for money in terms of skill building. The information however you can find for free. 2. I had a financial advice here, but edited it out. instead read point 3. 3. Don't trust anyone online to give you financial advice and go find a good financial adviser with all the credentials and licenses that he must have in order to practice in your country. I'm not such an adviser. It may very well be the case that you will be better off paying off part of your debt or keeping the money as an emergency fund. Any sound financial advice can only be given after the careful professional analysis of your current situation. In any case, saving $1500 is a great achievement in the modern consumerist world. Congratulation. Keep doing whatever you did to save the money, invest wisely and very soon you will be financially free. Good luck, theonlyguy! __________________ Ilya.