It is no secret that many young people have been the victim of a struggling economy—there exists many articles and editorials with speculations about why—but the fact remains that jobs are hard to come by these days. It might seem then, that income is also difficult to acquire. Thankfully (as Jason Hartman knows) there are a number of creative ways to make money with simple investments. How, you ask, might you acquire the capital necessary to invest and make your own money? Simple!
First, begin with your friends and family. These people usually love you, and there’s no one more likely to invest (if they’re able) in your ideas. They’re also a great audience to test your idea on, and they also can provide feedback to formalize your plan going forward. Make sure you aren’t putting personal relationships at stake should the business fail by viewing it as a loan, getting serious fast, and making responsible and informed financial decisions.
Next, consider ways you may be able to self-finance, at least partially. Savings accounts, responsibly used zero interest credit cards, and leveraging of assets can give you the initial capital if you’re serious about funding your project. By making yourself financially vulnerable, you’ll find yourself with a greater sense of ownership and dedication toward your vision—but be smart (and careful) about it.
You might also consider taking out a small business loan, though they might be harder to come by in the current economic state. Still, with the right amount of time and research, you can find a bank willing to lend you money and get things going in your business world. Look for interest rates that are consistent with others in your area, and discuss every option with the banker and your financial planner.
Crowd funding may also be a viable option (depending on your project—there are quite a few rules for the various crowd funding platforms). Similarly, you may have success finding an angel investor, though this can be tricky and may also limit your creative control.
Odds are, your funding options will be different at different stages of your business venture. You’ll probably use at least a few of the above options to varying degrees of success, eventually landing on a financial strategy that best works for you. Then, if you’ve worked smartly, you many find the opportunity to invest in someone else and further their business dreams (http://www.flickr.com/photos/cayusa/2276783536/)
The Young Wealth Team