The pros and cons of being a conservative investor
Most people who are willing to invest money tend to start small and then, when positive returns start to appear, gradually increase their investment. A conservative investor would not invest more than they can afford to lose. This means that if the investment were lost entirely, the investor and his family would not suffer financial hardship.
Some banks have special accounts that pay more interest than regular accounts, but they are not as affordable for you. This pays little, but it’s great that you pay something on whatever balance is in the account.
One of the other advantages of investing little and planning to do some work to generate a bigger investment is that you feel like you are doing something for the future of your income. Most are used to trading hours for dollars, so it would make sense to us.
I have been totally fascinated by the number of certain fast food chains found in parts of Canada and also in the United States. One of the founders of one of these chains was asked why he and his partner kept opening more and more restaurants. He replied to the reporter: “It wouldn’t be fun to open a few and let them get rich. We like to take a chance on the prosperity of more and more restaurants.”
His idea seemed to be that the excitement of investing more and more money, time, and resources fueled an internal need to take risks. Most of us would like to do what they did, but we are too afraid of losing everything and then being so poor that it would be terrible. I wish you good luck.
Those who invest larger amounts receive higher interest and higher returns on their investments. The amount that some of these people could lose is so high that it would probably keep a small country running for several years!
I am from Northern Ontario so I am very familiar with the huge amounts of money that are lost in the blink of an eye. In times past there was no sure way to tell how much gold was under the ground and how much stone was on the surface. My grandfather was a gold prospector and made a very good living. He was investing work for dollars, if you will, but he also received a percentage of the money earned by shareholders.
I don’t have your nerve to take a big risk.
If you want to invest a lot, keep in mind that you could lose everything. Investing little would still pay little, but there would be some benefits.