Should you start your own business or invest in companies that others have created? Which is the best choice when it comes to financial freedom? Naturally, the answer will differ for everyone. In this article, Ferrari Energy provides insights that will guide readers in making better financial decisions that could increase their net worth.
While investing vs. entrepreneurship may not be an age-old question, it’s undoubtedly a classic. For decades would-be investors and entrepreneurs alike have grappled with this puzzle.
Before we dive into some of the specific factors to consider, the general answer to this question is yes! Yes, you should start your own business to increase your net worth, and yes, you should invest in existing companies.
You see, while these options are typically paired as an either-or choice, they shouldn’t be. When constructed as an either-or choice, this question is like asking should you do cardio or lift weights to become healthier. When the question is presented in this context, it is easy to see the answer is generally yes, do both. Still, depending on your fitness goals, one may play a more prominent role than the other.
In the general case, if you have the financial resources and flexibility to start a business and still have money to invest – do both. However, if you must choose one over the other because of limited time or money, the specific considerations now come into the picture.
It’s worth stating again that the best solution will depend on each individual’s circumstances, risk appetite, and passions. That being said, here is a general rule to help with this choice.
If you have the time and passion for starting a business, you will likely find that endeavor more fulfilling than investing in the market. On the other hand, if you have significant time limitations, such as a full-time job, but have resources, investing is tailor-made for that circumstance.
Let’s look at two examples to illustrate this point.
Gayle has a great job. She makes more than she needs to meet her monthly expenses and enjoys her work. But, she has always wanted to own and grow a company. Given just those limited details, what should she do?
Gayle should probably keep her job, bide her time, and invest her discretionary income to build a nest egg.
Leon works in his chosen field but is not dependent on his paycheck to meet his financial obligations. He, like Gayle, has always wanted to start a business.
Leon is better positioned to start a business than Gayle because he can devote the time needed to grow a business. To be sure, starting a business is nothing if not time-consuming.
In the end, both Gayle and Leon can have it both ways, but making the best choice, to begin with, will make the difference. After her nest egg is sufficient to support her for a time, Gayle should, by all means, launch her own brand. After he begins to make a profit in his new business, Leon should invest in other companies to diversify his holdings.
About Ferrari Energy
Ferrari Energy is a family-owned private oil and gas company focused on mineral and leasehold acquisitions. Founded in Denver, CO, by Adam Ferrari with a focus on educating landowners, Ferrari Energy has consistently served the needs of the landowner community in the basins in which it works. Its operation covers several areas throughout Colorado, Wyoming, Utah, and ND. Ferrari Energy has provided oil and gas leases to over 850 homeowners and held multiple lease-signing events to accommodate the residents of Broomfield, Colorado.