How Saving Money Made Me Broke II
While it is wisdom to save for the purpose of investing, the question now becomes “how much do you need to save to invest?” because if you don’t get this right, you could be deceived to think a saving account is good investment – a blatant lie which will only make you wind up broke.
In my last article, I shared with you how saving money made me broke and how you can avoid my error. Do well to read that article before continuing with this one. The crux of that article was the fact it’s not just saving money but the purpose of savings and eventually what you do with your savings that enables you to create wealth.
If you’ve been saving money for any significant period of time to create wealth, you’d often find yourself on the lookout for opportunities to invest in…
…and this can be a tedious search I must confess.
So after publishing the article on how saving money made me broke, a reader asked a question and that’s what I’ll be responding to in this article.
How much do you need to save to start investing?
Quite obviously (well, not so obvious anyway) there’s no direct answer to this question.
The amount required to get started investing depends on what investment vehicle you’re boarding per time.
There are numerous investment opportunities around you but not all of them are suitable for you at any given time. I’ll quickly point out three investment opportunities and show you how much you need to start investing in each of them.
Investment Opportunity #1 – Your Mind.
The most important investment you can make is that which you invest on your mind.
The mind is the greatest wealth creation tool anyone can have and to invest in your mind is to empower yourself to create wealth out of thin air. Because your mind was given to you by God to create with your imaginations and solve problems on the earth as you draw from your spiritual resources.
It is with your mind that you RECOGNIZE the opportunities God brings into your life for profiting.
The opportunities abound, you only need to recognize them and take advantage of them.
An undeveloped mind is an untapped goldmine.
How do you invest in your mind?
By investing money on quality financial education resources that will improve your financial intelligence. Through reading books, attending seminars, taking courses to improve your financial intelligence and shield you from making avoidable mistakes with money.
How much do you need to invest in your mind?
The first book I remember buying on the subject of money was “Think and Grow Rich by Napoleon Hill”, it cost me only about 500 or 600 Naira but the lessons I picked up from that book have stayed with me.
I bought a book for 5,000 Naira the other and while some people would raise eyebrows at the cost, I’m confident that the content of the book has the capacity to change my life.
Step out of your comfort zone. Invest in your mind.
However, it is important for you to know that investing in your mind is a life long project.
Investment Opportunity #2 – Trading.
Trading (Buying and Selling) is another investment opportunity you can take advantage of especially when you’re just starting out. This is an investment type that yields returns quickly and enables you to take advantage of other investment opportunities in the shortest possible time.
This doesn’t have to be difficult – just don’t complicate it.
People will gladly pay you higher for saving them the stress of going to the market themselves. For example, think of busy professionals who do not have the time. What can you sell to them to save them the trouble of going to the market?
(This is one of the reasons why eCommerce rocks – Check, click, buy. 😉 )
How much do you need to get started?
Believe me, you don’t have to buy 10 pieces of that gadget before you start selling.
How about starting with just one piece? Deploy every negotiation skill you know to get it at a cheaper rate and sell it off.
That was how I got started selling universal modems back then. I found a place where I could get them for a really cheap amount… I only spent a few hours to go get them and bring them back to my location. Where I was making around N3,000 profit for each sale.
I’ve done this approach too many times. It works and you can get started with little…I’ve started out with 3,000 and even 6,000 Naira in time past and still made decent profit.
Investment Opportunity #3 – Mutual Funds.
You might have noticed I haven’t mentioned anything about the financial markets even though we’re talking about investment here right? It was deliberate.
You don’t have to invest there to get started with investment.
However, if you’re looking for a really long term investment vehicle that you can get started with, I recommend you consider the mutual funds option.
There are many of them but I’ve personally used First Bank. Just walk into any first bank branch and ask them for details about their mutual funds.
You can get started with just 5,000 Naira.
ARM Investments also has a good reputation, you can give them a try.
So there you go – three investment vehicles you can use and an idea of how much you need to get started so that you don’t keep wondering “how much do I need to start investing”
Hope it helps?
I personally invite you to join Kingdom Business Classroom today.
Kingdom Business Classroom is a closed Facebook group where you receive weekly lessons to help you take charge of your financial future and get all your questions answered for free.
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Remember your financial destiny is in your hands, take it seriously.
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