So I started this business with 500k in July 2017 and over the years, I’ve paid shop rent of over 300k per year, settled another “let’s call it a debt” of over a million Naira, paid my house rent of over 50k yearly. Don’t forget the everyday expenditure on clothing, shoes, feeding, light bills, transportation, give-always and a whole lot more. Literally, I’ve spend out over 7m within those years, and I’m not kidding. Cross-checking the stock in February, 2020, I still have stock worth over 1.5m.
Making Smarter Financial Decisions
It’s not necessarily a must that you have up to 500k before you start a business. With low capital of 15k, you can start something. If you doubt it, wait till I tell you how I started with 4k till the 500k came in.
Have YOU ever wondered how and when you are going to hit the big cash? That journey start from the time you begin to spend less than you make. Wealth is far different from the the quantity of stuff you spend your money to gather. Over time, most of those latest stuff you keep buying become liabilities. But wealth keeps you tall, doesn’t come once and there are steps to which you can become wealthy.
The number 1 step I want to charge you into is to invest that little money you see as not enough.
Number 2 is, be with the modest lifestyle. This is not a criteria to decorate your life with every cheap thing sold in the market. What is necessary to spend your money on is worth spending for the best – the best of all your house utensils and furniture. What you don’t really need is not worth buying, especially when it is so expensive. If you do not have to have a car right now don’t measure yourself with that lifestyle just yet. It will push you to spend more.
Number 3 is to get a business idea and try to find a client that would need the service. Start well with that one client. You need clients that will pay you money in exchange for your ideas or sells to start earning money.
If you can get the service closer to the people and offer amazing value, they will pay you for it.
Develop the right investment habits
Your 500k Nigerian money can buy you millions in the nearest future if you invest it on asset that gives return. It is gone – and I mean, gone forever if you spend it on Brazilian hair and latest fashion wears.
Your wealth increases because you
2. Pay your debt.
3. Live below your means (spend less than you make).
4. Invest in what gives you more money.
If you ask a child what he or she wants to become when they grow up you will hear them say they want to become a doctor, lawyer, an engineer, a successful businessman or woman and so on. You actually said same thing as a child and even now – you want to be wealthy. But saying is not good enough. You have to work it and in working, you ignore some of the designer shoes, clothes and jewelry or living in expensive rented duplate when you could build one with a two year rent.
Start your own business
Have you seen the world wealth record of millionaires and billionaires? They are mostly entrepreneurs. Many of those entrepreneurs are wealth champions who keep increasing their earning on their own until they reach their big goal. One truth is that 500k can fund part of your child’s school fee or get a two-bedroom apartment for your family. Some people can even boast of having a 500k but if you don’t take quick discipline to invest it – which is an important goal ofcourse;
ONE: Is, you could end up spending it on clothes and maybe food.
TWO: You could get lazy that you’ve arrived and start wasting it on what’s not
necessarily instead of working to increase your earning.
Have any amount and want to invest?
- Look for businesses that are profitable and can give you good return.
- Go for what you’re passionate about.
Depending on the amount of investment, if you stick to it rather than deviating, your business can earn you a certain amount now and a certain amount in the future. If you are just starting a business you are going to fear risk, that is normal in a way. You will have better understanding of that business as you progress in it. If it is a business of buying and selling, you are going to later discover places you can get those items at a cheaper rate and sell cheap yet still have your gain. It is going to take months or a few years to mature and start bringing a bigger return and even in a poor economy, it is possible to make 10 times your total investment within your first few years.
Even if you are buying lottery tickets, you get your money from saving and investment. Your investment could be buying lands or houses and reselling later. Whatever is your side hustle is going to give you clients and you must have to charge those clients a perfect price. You have to build good relationships with your clients and you must deliver good results. Once you prove yourself to be trusted to your customers, great results will follow.