Obaid Arshad

Should you invest in assets or start your own business

Money is a need of everyone. We all are struggling to earn money for a better living and raising up lifestyles in the best way possible. You can increase your bank balance by bringing in cash either by investing your earned money into assets or by starting your own business.

Handle your money in the right way to conquer your dreams and secure your future. As Hyacil Han in her book, 50 extremely beneficial Businesses that are undeniable cash cows said:


The statement supports investing in assets for a better future which seems true when we look at the persisting condition of the country. Inflation due to many reasons can be seen, fluctuation in the business economy specifically in the year of Covid convinces us to save money by investing in assets. However, at another place, Hyacil Han emphasized investing in yourself, she said:


This is advice to motivate beginners who are eager to develop their businesses and build their careers. You invest to grow yourself instead of resourcing someone else’s business. The profit you make is solely yours, not shared with anyone else.

Here we will talk about where you should invest to make maximum profit. Which way is best, should you invest in assets or start your own business?

Why do you invest or begin a business?

Investment is made with a goal to generate more income and increase the value of your money. People invest in assets so they can sell them at higher prices to make good profits. It ensures a secure future and can be used on rainy days when businesses are low. You can invest money in someone else’s business to get a share when they make a profit. Bonds, real estate property, vehicles, precious metals like gold, and stock are some other mediums where money can be invested. 

On the other hand, business begins with an idea to serve people via your products or services. In exchange, you are paid by the customers. You have to come out of your comfort zones to do business at the expense of time, money, and energy then you get the value you need. Whether you are investing in an asset or starting a business, in both cases you have to pay a price. As Warren Buffet, an American businessman said:

“Price is what you pay. Value is what you get.”

Possible Outcomes of Investing in Assets

From an employee to a reputed company’s CEO, anyone can invest in assets to gain profit later on. What you need is money to purchase, whether it is a vehicle, property, precious stones, shares, bonds, etc. The money to invest comes from savings you made from your regular income. People use their savings to invest in assets to put their money to work to get more in return.

Investing in assets has the potential to provide long-term returns. Investment in various assets has different degrees of return and risks for example:

Growth Assets

Investing in growth assets brings in regular profit. Capital invested in another business will keep your invested amount intact and you will get a share of profit per month or per annum as contracted with the respective party. Moreover, a house rented out also earns you money per month. Such assets are growth assets that grow with time. Growth assets are riskier.

Defensive Assets

The cash deposited in banks and bonds is a defensive asset. The return is lower and gained after a long-time but is less risky.

As CEO and founder of Prometheus Alternative Investments, Michael Wang says:

“Traditionally high risk-high reward investments, like cryptocurrency or growth-focused stocks, offer more volatility for investors. For those looking to take less risk in their portfolios, traditionally safer investments include treasury bonds, money market funds, and “blue chip” stocks that pay dividends to investors.” 

A constant rise in the living cost with time highly affects financial status. In that case, investing in an asset that returns you good profit when needed and ensures capital growth seems a wise decision. It helps you earn extra income which can be used to meet day-to-day expenses or the additional money generated can be reinvested into other assets to make more out of it. This is how your wealth can grow.

According to Mark Henry, founder, and CEO of Alloy Wealth Management, 15% to 25% of your income after clearing tax is an ideal percentage to invest in assets.

Look at your financial status before sparing money to invest in assets. After fulfilling your non-negotiable expenditures, paying off debt, and putting aside emergency funds, see how much is left. Try to spare a percentage of money from that specific amount every month to invest in assets to secure the future. Be consistent and you will achieve your objective for sure.

Clarify your goals to spend the right amount, at the right time on the right assets. This strategy is helpful to set your timeline and budget and also gives you the initiative to begin investing. Risks are always probable no matter what assets you invest in, some have less, some have high. One thing you should be assured of is the legitimacy, invest in an asset that is legal in every aspect.

Possible Outcomes of Starting your Own Business

Starting your own business is a good decision if you build the right strategy. You are your boss, can expand your business, and strive to generate more and more income. Prices of products and services charges are set by you. You know the exact amount of profit you gain.  Things are predictable but risks are still there. The business earns high when the product is in high demand or it may also happen that the income generation slows down in some instances.

There is a scope for expanding a business. Start with a small one and gradually progress to work in collaboration with giant corporations. In this era of technology where e-commerce businesses are blooming rapidly, it’s easy to set up an online business. Many youngsters are into it with little investment; they begin and touch the peak through an untiring struggle. Everything is under your control, you can find ways to handle the issues to prevent loss if it occurs.

Let’s face a fact:

According to the ThinkImpact stats under uncertain conditions such as during Covid-19, a 29% increase is seen in the interest of people to have self-employment. 63% of entrepreneurs agreed that being self-employed was their best choice during a pandemic.

Final Thoughts

Which is better is always a debate. Both can go parallel as well, the only thing you need is to build the right strategy in either way. Understand yourself and your objectives, and do market research before making a decision. You should know the outcomes from the core. Educate yourself well before choosing any of the two options because success is attained by making the right decision at the right time.

It depends on you, if you are passionate to live your dreams, to make a mark in your life then you must start your own business, and if you care much about profits and making money then invest in assets or someone else’s business to get more profit through less effort.

Obaid Arshad

Cofounder & CEO Ginkgo Retail

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