Quote:
Originally Posted by Jimmods
So long story short, I was left around £7,000 for my 18 birthday. It was left because of the loss of my dad, and I really want to do something with it that would make him and my family proud. I also don't want to just spend it and have nothing to show for it.
So I want to invest or possibly start up my own business. I know how hard and costly it is and realistically £7,000 could disappear quickly. So obviously I'm looking for a small business idea or investment idea.
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Hi,
First, Steve gave you some amazing advice...
I would support generally what he says.
The hard facts are, most entrepreneurs start out by losing money... If you're a young guy (as it seems you are), the chances are high this could happen, as you probably haven't developed all the skills you need, yet.
I would recommend you think of what skills you need (e.g. sales, marketing, are always helpful), then get jobs where you will get those skills. Also, reading good books, articles, posts, etc. (and implementing what you read) is always a good idea!
As for what to do with the money, at this stage I would look around to put it in a low-risk fund (or even an index fund, which should have low fees). That way, you won't be tempted to spend it, and when you're ready to use it, it will be there (and hopefully have increased)!
If (and when) you do start a business - make sure you get one or more mentors! I highly recommend it. It will prevent you from making dumb mistakes, if you run your big decisions by them first. They should be experienced (and successful) in business, ideally, in a business similar to the one you want to run...
Many experienced business people are willing to help, especially if they like you personally. Not everyone has the time or inclination, but if you keep asking, you'll find one or more people willing to give you their advice...
Finally, you can preserve the memory of your Dad in other ways. My brothers and I fund a small student prize, for the best student in a university class my father used to teach. (You can see the prize listed near the end of the page
here...)
After my mother passed away, my uncle and aunt started a scholarship in her name which helped a student each year with educational funding. I don't remember how much they put in as "seed money" for it, but they put a certain amount of money into a fund, and then every year gave away a portion of the profits as the scholarship. (For example, if you had $15,000 to invest, you could put it in a fund, and choose to use, say, 5% of it every year for the scholarship. While that's only $300, even that amount can help someone, plus, if you make more than 5% a year from your investment, the initial investment won't shrink!) It's another nice way to keep someone's name alive in the community.
There are some ideas!
Best wishes,
Dien