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The Relationship Between Your Idea and Your Money Can Be Dangerous!

relationship-between-idea-and-money Often times we get great ideas, insight, and things we want to do, but they simply take some money. To start certain businesses it takes a few hundred dollars and others may take hundreds of thousands of dollars. Depending on your position in life will depend on how you should approach any investment or venture where money is required.

Putting All Your Money Into One Thing

If you are looking to put all your money into any one thing – this can be very rewarding in certain instances since you leverage and feed things that require capital to grow. For example, if you put all your money into Coca Cola stock in the 1920’s then you would be more than a multimillionaire today even if you invested very little. If you invested a heavy amount then you would probably be closer to a billionaire! Unfortunately, this can be extremely dangerous!

Anytime you use ALL your money or capital into any one single idea, investment, or business venture it can put your money, family, and life at risk… Think of this as if you spent every dime you had including the pennies under the couch on starting a business venture. $250,000 later, you are left with a website and some inventory of products, but the end result is you had to file for Chapter 9 bankruptcy!

A large loss like this could be a huge weight on your shoulders not only from the financial side, but also the emotional recovery side.

Be Careful On This Relationship

When you put all your money into one area, you need to be very cautious especially if you have that one big idea. Always think twice and protect your money for your future. Nothing is worse than to see your greatest idea to turn into your greatest mistake that ruins your financial life…

What was one of your greatest mistakes financially? Have you ever put all your money into any one thing…?

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DISCLAIMER:

On MyLittleNestEgg.com we try to provide accurate information on personal finance and investing, but it may not apply directly to your individual situation. We are not financial advisors and we recommend you consult with a financial professional before making any serious financial decisions.

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