In this reflection I’ll share my perspective on where entrepreneurs should put their money. These are ideas based on what I’ve seen and what I do as a business owner myself. If you run your own business, are self-employed, or are in the early stages of building something, this is for you.
Quick overview: common options and what I think
- Savings accounts — safe but very low returns (in the U.S. many savings accounts still pay well under 1% annual interest).
- Retirement accounts & stock market (401(k), S&P 500) — historical returns around ~10% annually over long periods.
- Investing in yourself and your business — potentially much higher returns and creates recurring monthly income.
- Cryptocurrencies (e.g., Bitcoin) — huge upside for early risk-takers but also high risk and more mature now.
- Real estate — income and tax advantages, but also cashflow responsibilities if the property isn’t rented.
1. Savings accounts: safe, but not growth engines
Savings accounts are fine for emergency funds — you should have a buffer for unexpected expenses. But for most entrepreneurs keeping excess capital in savings is an opportunity cost. Interest rates on savings are often under 1% in many markets, which means your money won’t grow meaningfully. If your goal is to maximize returns and accelerate a business, savings accounts alone won’t get you there.
2. Retirement plans and the stock market: steady long-term growth
Retirement plans like a 401(k) invest in public companies and broad indexes such as the S&P 500. Historically, the S&P 500 has returned roughly 10% per year over long stretches (look at multi-decade averages). If you have a steady job and your employer matches part of your contribution, contributing to a retirement plan is a smart, low-effort way to build wealth.
However, for many entrepreneurs, the trade-off is timing. Money locked in retirement accounts is meant for decades in the future. If you’re building a business now, you may prefer capital that can be reinvested into growth today — especially if those investments can return more than the historical market average.
3. Invest in yourself and your business — the highest-leverage move
This is where I believe most entrepreneurs get the biggest win. Investing in education, skills, and direct business growth often returns far more than passive investments. Why?
- Skills compound: new abilities let you offer higher-value services, optimize operations, or launch new products.
- Faster growth: focused reinvestment can multiply revenue in months or years, not decades.
- Recurring income: building systems and offers that generate monthly revenue is more powerful than one-time appreciation.
Put simply: a well-placed $5,000 investment into marketing, product development, or a new sales channel could multiply business revenue several times over. That recurring revenue then funds other investments — including buying crypto, stocks, or property later.
4. Cryptocurrencies: early adopters were rewarded — but today’s risk is different
Bitcoin and some other cryptocurrencies made early investors wealthy because they bought in when prices were tiny and adoption was uncertain. That was pure risk-taking rewarded by massive upside.
Today, cryptocurrencies are much more visible and many institutional players understand them. That reduces the “cent-by-cent” explosion potential that early adopters saw. Crypto can still be part of a diversified strategy, but for an entrepreneur with limited capital, I’d prioritize business growth and personal development first. If you allocate to crypto, treat it as a speculative portion, not your core growth strategy.
5. Real estate: income, tax benefits — but not always passive
Real estate can provide rental income and tax advantages (depreciation, deductible expenses, etc.), especially in markets like the U.S. where those incentives exist. But it also brings responsibilities: mortgages, maintenance, vacancies, and cash outflows if the property is not rented.
If you own multiple investments (property, crypto, stocks), each one requires attention and capital. For many entrepreneurs this can dilute the cash available to scale the business. Buying a home you live in is valuable, but as a business strategy, owning rental properties makes the most sense when you have the cash flow and systems to manage them without starving your business of growth capital.
How to decide what’s best for you
Ask yourself where you are in your entrepreneurial journey:
- Early stage, limited revenue: prioritize investing in yourself and the business. Focus on actions that increase monthly recurring revenue and customer acquisition.
- Stable business with steady cashflow: consider diversifying — retirement accounts for long-term security, some real estate if you want income, and a speculative slice for crypto if you understand the risks.
- Comfortable reserves and systems in place: start building a balanced portfolio while continuing to reinvest in strategic business growth.
Practical examples
Example A — You have $5,000 extra:
- Option 1: Put it in Bitcoin. If Bitcoin multiplies, you profit once; you need to convert it to cash to spend.
- Option 2: Invest in a marketing campaign or a course that helps you sell more. If this grows monthly revenue to $20,000, you’ve not only recovered the $5,000 but created recurring income that buys more opportunities (including buying Bitcoin later if you want).
Final thoughts
There’s no one-size-fits-all answer. If you have a secure job, retirement plans and some passive investments make perfect sense. But for entrepreneurs who need growth capital and want to scale their business, the highest-return investment is often yourself and your company. Prioritize actions that create recurring revenue and scalable growth before spreading cash across many investments that drain working capital.
Choose where to put your money based on your business stage, appetite for risk, and the returns you realistically expect. Invest in learning, systems, and sales first — that’s what will often unlock the rest.
Hope this helps you decide where to invest as an entrepreneur. — Salazar Digital
Salazar Digital Local Marketing
1172 Murphy Ave #208, San Jose, CA 95131
(408) 532-5118
