Standard 6

Reflection:

It is very important to invest in all areas and have a diverse portfolio because instead of having a very high risk on something like the stock market, and having your investment fail, you will have other companies "keeping you floating". If one company or stock fails, you will have more to keep making you money. Also if none of them fail you would be making more money all around anyways. The rule of 72 is a rule that takes your interest rate you are making on your money and divides it by 72 to calculate the approximate number of years it would take your money to double with that interest rate. Saving is a key part of investing as your money will have to sit (not be used) as it is collecting interest so that it can collect the full amount of money or more that you want. The relationship between investing and entrepreneurship is simple. Investing is when you put your money into a company (not your own) and make money off of their profits; entrepreneurship is when you put money into your own company(s) and make your own profits. A couple of differences are that investing is more simple than the other but also most likely makes less profits. While entrepreneurship has a higher risk, such as your business could fail and you lost all the money you put into it; but it could also do very well and make very high profits. When it comes to both investing and entrepreneurship there is always a possibility of hitting gold or striking out; it just depends on which way you think about it.