Thursday, August 9, 2012

How should I reinvest my gold profits to make more? A simple breakdown for you all.

OK everyone hypothetical scenario time!

I just log into the game and collect my booty from my overnight sales.  I've got 20 Gold in profits!  Sounds pretty awesome, but now what do I do? Do I take my 20 gold and put it into my bank storage? or--Do reinvest it into the Guild Wars 2 Trading Post?

Here is what I would do.

When I am just starting out I would reinvest nearly all of it.  18-20 gold is a safe bet in my opinion.  It may not seem like much, but even early on it is nice to put away 2 gold for your savings.  You could use that for other characters or just start slowly filling your coffers with gold.  You want to do this so you can actually make a profit.  If you continually reinvest all of your gold earned you really aren't making much gold.  You have assets, but not liquid gold and unfortunately there are very few vendors in the game that accept crafted items as currency.

The big questions is "what do I reinvest my gold into?"  Your options are quite endless, but it will fall under one of 3 categories.  Either crafting, power-trading(flipping) or gems.  This will largely depend on what disciplines you have chosen to level at first, but my greatest piece of advice would be not to put all 18 gold into a single market.  That is a bad idea for more than one reason.  Just like any economic endeavor the market can go south at any time and you never want to have all of your eggs in one basket.  Pardon the horrible saying, but it holds truth in this case.  The second reason is that if you are investing into one thing you aren't discovering new markets.  I come from a manufacturing background and there are different pillars to our business.  We have sales, production, customer service etc.  Pretty much all the major components of any business.  The one I left out is research and development (R&D).  We are always developing new ideas to keep our company moving forward.  This is no different in Guild Wars 2.  Now, I understand that you aren't actually creating new items in the game, but discovering new sales markets can be considered R&D in the game.

Each player is different in their belief of how to invest gold.  As I stated I am investing 18/20 at the beginning if I make 20 gold.  That equates to a staggering 90%.  I have to emphasis that this is only in the beginning.  My plan, over time, would be to dial that back to 60-65% and start putting the rest away as profits.  I don't do this only based on time alone.  It has to be based on what I am making in profits.  The number, depending on what I make, could fluctuate day to day.  I tend to stick to a close model for what I do.  You could do this any way you choose just as long as you are reinvesting your gold into something.

These numbers are pulled out of thin air since I don't know how much I can make in a day currently, but my own model would look something like this.

20G/Day=90% Reinvested (2G Saved)
25G/Day=85% Reinvested (3G, 75S Saved)
30G/Day=80% Reinvested (6G Saved)
40G/Day=75% Reinvested (10G Saved)
50G/Day=70% Reinvested (15G Saved)
60G/Day=65% Reinvested (21G Saved)
75+G/Day=60% Reinvested (30G+ Saved)

These are only the numbers that I use.  I want to make sure you don't interpret this as a law of economics or anything.  I have just used this model in the past and it has been successful for me.  It all depends on the amount of effort you put into making gold.  Someone who spends a little less time may save 75% at first and peak out at 45% saved.  There are too many different investment styles to say that this scenario will work for everyone.  If you are a casual player and only putting in a few hours a week you my have a completely different approach to this and I would love to hear about it so be sure to leave a comment!

I want to highlight again that there aren't any numbers set in stone.  If you want to make gold the only thing that is important is that you reinvest something.  If you are new to MMO markets you can do just 10%, but I can tell you now that you will quickly realize that the more you invest the more you grow and get back the next time around.  Each time you open up your mail and retrieve your days profits, before you do anything else, lay out a simple budget of what you are going to do with that days take.  People who follow their budgets are much better at saving money...that is a fact.

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