business: Financial investments
14, 2003 - by Lisa Bruton, SimCity Social Services
you into home businesses? Let's take a closer look at financial investments.
All you need to get started is some scent, strategies and patience - and
of course a lot of Simoleons to waste!
can actually make a pretty nice income, but you would of course need a
certain capital to start off with, a good plan, and you should expect the
investments to take quite a while until they start paying off. Sims in
this business use to say that "investments is a tool to let your good luck
flow". Well, now you can see for yourself how right they are.
sims who try making a living from finances do have a home based office.
It can of course be a desk in one corner of the bed room, or they might
even run some kind of a local business with a section of their house facing
the street welcoming customers. It's also typical to wear a smart skirt/jacket
or a suit with a tie, because these sims like to signalize a solid and
clean attitude in order to build trust and reliability towards their contacts.
But you don't need to open a public business, the desk in your bedroom
will be just fine.
A desk, a computer, a phone,
some office stuff like filers or bookcases, and absolutely some coffee
machine near by. And you might like to get hold on some proper clothing.
important to get started is the capital, and in order to success in this
business you will need quite a lot of Simoleons. Many sims in this business
would not consider any investments less than §10000 as serious business,
but a hobby. But everyone will need to start with what they've got, and
with some luck your investments will allow you to invest twice as much
in a few weeks.
much you will need depends on your goal for the investments. If you want
to deal with finances as a hobby not so worried about the results, you
won't need much. Maybe it's enough to buy a couple lots from the actual
SimCity lottery and hope for a 1st prize? If you want to build a fortune
you will need more capital, because the more you invest the more you can
there a risk?
course this is risky business! That is why you should make sure you do
not depend on the profit from financial investments. Always keep some spare
savings or art items that you can sell of in case the investments do fail.
And that is also why you should spread the risk by never place all your
capital in just one project.
are many different ways to place your money. You can buy expensive paintings
and sculptures which will pay off slowly and that are considered safe investments.
But be aware that the less expensive items will not increase in worth,
and it's not always easy to tell until you have already lost some of your
money. If you want some more risk but with the chance of a quicker profit
you can do high risk investments that will pay off a lot more if you are
lucky. This business will also include gambling on slot machines or lotteries,
or even to just pick up a lucky phone call to your office desk.
additional risk when investing is burglary. Do buy an alarm, and do not
place the items near the entrance to your house. This will give the police
more time if the burglar appears.
you need extra start capital you can of course take up a bank loan, just
be aware the interests might add more costs to your budget than you are
able to realize as a profit from your investments. Loans will keep growing
until they reach a negative value of nearly §30.000, and this will
affect your households net worth and might cause trouble if you want to
move to another house and need to pay the loan(s).
say you want to start with a capital of §10000 that you can afford
to lose without harming your all over financial situation too badly. In
this example your main project will be to buy a SimInvest Silver worth
§5000. Because of the bank fee on the first day this placement will
need a week until it starts paying off §400 per day. But with some
bad luck you do risk to lose the entire investment.
remaining §5000 should be spent on a couple safe art investments (painting,
rugs or sculptures), but be aware that not all of them actually raise in
value, and when they do it will happen quite slowly. Our general experience
is that items worthy more than §1000 will increase in value over time
- but there are exceptions. If you buy an art item that is still decreasing
in value after 2 nights, then sell it before you lose more money, and invest
in something else. If you already know an item that will increase you can
of course buy several copies, but the interesting thing is to find an object
that will pay off even more!
if you follow this strategy, you will now have a SimInvest of §5000,
and lets say a persian rug and a nice painting worth §1500 each. This
leaves §2000 as your back-up capital, and if you know about any art
item worth §2.000 which you are absolutely sure will not drop in value,
you should place the remaining §2000 in that as it will pay off a
there is a lot more to win if you get lucky with the SimInvests, you should
actually invest in two SimInvest Silver certificates, but for this example
it's more fun to invest in different kinds of objects. The risk of losing
money is less when buying art, but you will also earn very little per day.
what might the situation be after 7 days? Well, there are many possible
results, here are 2 of them - one bad and one good.
you are all out of luck, there is a risk your SimInvest Silver will fail
and you lose §5000. In this example the painting's value do decrease
while the persian rug increases.
Day0: §5000, Day7: §0, Day14: 0
Day0: §1500, Day7: §1140, Day14: §1020
Day0: §1500, Day7: §1560, Day14: §1610
Day0: §2000, Day7: §2000, Day14: §2000
Day0: §10000, Day7: §4700, Day14: §4630
see that this was a bad investment, and anyone making a living from investments
would have sold off the painting after a couple days because its value
would obviously continue to decrease. Replacing the painting with another
art item, eventually a 2nd rug, could have reduced the loss.
a lucky day things might turn out differently, your SimInvest Silver will
pay off after 1 week, and both the painting and rug pay off, too.
Day0: §5000, Day7: §5000, Day14: §7800, Day21: §10600
Day0: §1500, Day7: §1610, Day14: §1705, Day21: §1790
Day0: §1500, Day7: §1560, Day14: §1610, Day21: §1720
Day0: §2000, Day7: §2000, Day14: §2000, Day21: §2000
Day0: §10000, Day7: §10170, Day14: §13115, Day21: §16110
see that this investment was a lot better, as you have increased the investment
with §3115 after 14 days. This is only §220 per day, but it is
only the beginning. Because the SimInvest don't pay off at all for the
first week, the future daily income will be greater.
soon as you see that the SimInvest succeeds, you should sell off the safe
but slow art investments, and invest in another SimInvest Silver. If the
2nd SimInvest fails, you will still have about §10600 from your 1st
SimInvest, which is not a lot more than you originally started with, but
at least it will continue to increase with §400 per day. If the 2nd
SimInvest succeeds, you will soon be in the situation of earning §800
per day! The goal should be to have the SimInvest Gold which pays off with
§1000 per day. When it reaches a value of §20.000 you can sell
it, buying another new SimInvest Gold and still keep §10.000 in cash.
The longer you wait the more is the gain, but be aware that even investments
worth more than §20.000 might suddenly be worthless due to down hill
development on the stock market.
is always a catch when it comes to investments. To realize the profit,
which you sooner or later need to do in order to avoid a crack or to pay
your bills, you must sell off the item. Make sure to secure future financial
income by re-investing at least some of it. The catch is that you will
need to go through the stage of risks again.
sims are quite experienced when it comes to investing their spare money.
The well known movie actor Pete Jones have partly financed his huge §200.000
house in Lake Town thanks to financial investments, and together with his
wife he still place money in the stock market.
Simmerville we know the Simpley sisters have made their living based on
SimInvests, making it possible for them not to work one single day after
they moved to Simmerville. They didn't want to comment on this though,
except explaining that it was much easier before the stock market became
Bertrand Montpellier (Simmerville) has started a home based career in the
finance track. Although he is in the start level, still having some bank
loans making it hard to make a lot of profit, he says this is the only
kind of work that is appealing to him. In addition to the investments he
has recently started a house trade business, that will be introduced in
a later article on Simmerville web.
general there is no need of skills or minimum capital requested to get
started - meaning this business should be interesting to all, being a lifetime
commitment - or just a temporary hobby.
Photo top: Mr Bertrand Montpellier
in his home office.