Quote:
Originally Posted by will76
In most cases i would say it is true, and it is definitely a lot easier to make money if you already have lots of it.
I started this business 11 years ago with about a $2500 investment into a new computer and paying someone to build me a website. I've made lots of money with out having had a pot to piss in, but that is not the norm.
On the flip side I know of someone locally who inherited a ton of money, he purchased a lot of land several years ago in areas just out side of town. About 20 years later due to expansion that land is worth a lot of money, millions more than he paid for it.
People who have a lot of money can invest in long term deals, which will pay out a lot of money over time. People who do not have lots of money need to invest it into deals that will yield results now because they need the money to live off of. It makes it a whole lot harder to be successful if you starting off from day one broke vs someone who already has millions to play with.
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Agreed.
I quit my advertising job and went through a phase where I would either be freelancing at the advertising company I had previously worked, or working full time in real estate sales. I always had a good salary in advertising, but was never able to save anything because NYC is expensive and I lived beyond my means. During the months of only doing real estate. there were times when it would be kind of tough because money would come infrequently. In big chunks, but infrequently nonetheless which made it kind of difficult. Not only from just a 'paying for essentials' standpoint, but because it required money to play the part and go after the clients I wanted.
After doing that juggling act for a while, there was finally an instance where a medium sized chunk of money came during the middle of a freelance assignment, which meant that I didn't NEED the money. At the same time, there were two back-to-back investments that sound as if they'd be high risk, but were absolute nobrainers (first buying DNDN and then shorting GM), so I pretty much went all in and it worked out. Then I shifted to a low risk strategy and am now able to either pay myself or reinvest approximately 1.5% of that money every month.
So, I guess the lesson to be learned is that sometimes the timing of opportunities will completely suck and sometimes they won't. Sometimes you can afford to take risk and sometimes you can't.
Case in point. After doing my site for a year and working really, really hard and learning a ton, there's a pretty good chance I may end up going back to do something similar to what I had done before at the end of the summer. Knowing that gives me the ability to take more risk in decisions involved with operating the site and whatnot. Etc, etc.
