A reader asked: what is total investment and how does it calculate. I want to know how this financial terminology used in personal finance, business franchise and economics. Awhile ago, while I am tracking the return on my investments in stocks and mutual funds, I read an email and he asked this question. So, I have now topic to talk about in InvestmentTotal.com – a blog that provides investing tips for beginners.
In business management, total investment simply means the total expenses (e.g. start up cost), total amount of money you put in, sum of money you invested in. You can determine the amount of money you already invested in business by calculating your expenses used for your business operation.
- Investments includes money spend in materials used when creating or developing your products.
- Your business store (if you are renting, the monthly rental fees are part of your investment).
- If you bought a franchise, the franchise fee and the business capital are some of your total investment.
There are specific formula to know the total money invested in a particular vehicle. But, to simplify, all you need to do is to calculate all your expenses.
| Particulars | Description | Amount |
| Store Location | Lot and Building | $300,000.00 |
| Products | Inventories | $250,000.00 |
| Total | Total Money Spent | $550,000.00 |
Total Investment Definition
We can defined the word “total investment” in many ways because it is used in different ways. But the broad meaning is as follow; It is the total amount of money spend for a specific thing (e.g. lot, stock, mutual fund shares, etc).
In this blog, since it is a personal finance, when I talked about my total investment, I am referring to the total amount of money I put in stocks, mutual funds and trust account. If you want to insert your own definition, just leave it in the comment box below. Let me know what is the total investment you already have in your stocks and business ownership. Thank you!