Factors to take into account when investing in the field

Very good to everyone! On this occasion I am going to dedicate this post to a topic that I really wanted to raise here and that is, factors to take into account when investing in the field. By this I am referring to the fact that it is necessary to spend the income from the harvest and that perhaps it is not so necessary or it can wait until later.

Like everyone in these times and why not say it, almost throughout our lives those of us who live in the countryside do not have enough money, as is well known by everyone, the prices of our products in the countryside do not allow for much more than what we It is the daily wage we pay to raise them and take them to the point of sale, which is why we have to calculate and study very well how we spend every euro cent.

When we think about making an investment and depending on its type, we must take into account a series of factors:

  • The purchase expenses, that is, do we have enough money to make the purchase? If not, do we have credits that we can accept to carry it out? And if they give us the credit, do we have other properties that can serve as backup to pay off our purchase? Because I sincerely think that, right now, there is not enough room to invest everything one has and remain, as they say, with the “noose around one’s neck,” since it is very likely that we will have a very bad time.
  • Maintenance costs are another thing that people do not take into account when buying, they buy things and at that moment they do not think that, apart from the purchase price, later they have to add more expenses, for example. For example, a trailer weighing more than 750 kg, if you want to have it legally in order to be able to use it whenever you want, you will have to pay insurance, the MOT and any breakdowns that may occur, if it is a tractor the same and if it is a farm, then depending Wherever it is, we will have to do some minimal work, I think it is not honest, letting the property be filled with pests that could affect the properties of the neighboring neighbors.
  • How much external expense are we going to save with the purchase? I think this would apply more to the machine, by this I mean that when we buy, for example, an atomizer, we do it because we believe that it will be cheaper than if this work is done for us by an external person, but this is not always the case. So. We have to keep in mind:

Is the external expense greater than the maintenance expense?

o   If yes to the previous point, how long does it take to amortize the purchase?

  • Do we have a safe place to store the machinery? This point is also very important, because once the machinery does not serve us for a while or at the end of the day, we must store it in a safe place so that it can serve us again the next day. If we do not have appropriate premises and we have to build or rent, it will be another expense that we will have to add to amortize it, of course if we had already planned to do so, since this purchase is going to be the final push that will push us to carry out the building.
  • When is the investment going to pay off? It is important to keep this in mind, since we cannot spend our entire lives waiting for the expense we made with the purchase to come back to us with some extra incentive, I think that money is there to take advantage of.

And I think these are the five fundamental factors to take into account when investing in the field.

Until next time! And you? What do you take into account when making an investment in the field?

By Rafael Espejo.

Bodegas La Aurora S.C.A.

Avda. de Europa, 7 Montilla Córdoba 14550

Tél: 957 650 362 

Tél: 957 654 642

Email: administracion@bodegaslaaurora.com

La Aurora Wineries

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