Start Investing with Nothing

That sounds like a joke. How do I start investing when I have no money? Many people perceived that they have no money and avoid the topic altogether. Let me share some insight.

I had done a little reading this year. I hate books, I'll doze off upon the first paragraph and exams are a torture. I had a few great men to thank. Three of my clients had told me "you must read this book 'Rich Dad Poor Dad'. It will change your mindset about money". How could three guys who have seen more than me, better fortune than me be so wrong about it? They told me, "the $10+ dollars investing in this book will pay off and it'll give you an idea why a lot of people are still stuck in their rat race".

It took me months, till repeat recommendation rang in my ears, gotten me curious about this 'great book'. Now, I thank these men, and the author Robert Kiyosaki for changing my mind.

Some who had read this book commented that there is nothing to gain from it. I learnt from what the author wanted me to understand, "reduce your liability and expenses, increase your assets and income". This will not make me rich, but it will help me avoid being any poorer than what I am now. It helped, I started asking myself, since I couldn't increase my asset (for now), I could have at least, reduce my liability and expenses. Good financial planning must be embraced early (it's never too late).

Coming back to my agenda of this blog post - How to Start Investing With Nothing? If you think you do not have the funds to invest, have you consider where you could raise funds? I have chanced upon one advice from one of the three men. Invest with others' money! If the cost of funds is 8%, and I can show you a potential returns of 10% per year (NETT), would that sound workable? If you think it's a joke, maybe you can stop reading.

Some people think they do not need money, or they are happy as they are now, being happy with little, maybe they want to start looking at being happier with more. Money is Not Everything, but Everything is Money. You are spending even as you sleep. Don't forget utility bills, other running cost of a home, etc.

It is time to change the way we think, take action and stop procrastinating. Money don't come to you, you have to find ways to make it yours. Stop self consolation that you can earned it back. Once money slips out of your hands, it's gone forever and you will have to earn again.

The big question now, How to Invest with Nothing! As taught by Robert Kiyosaki, reduce your expenses (and that will increase your disposable income). If a person has no savings to begin with, I will show you one opportunity where to find money for investment.

This sounds stupid to some, but idea to others (go on, laugh at my stupid idea). Invest using other people's money and pay interest on the funds you utilize. I can show you, making more than $1,000 a year, with nothing to begin with. Since you begin with nothing, $1,000 is a lot of money in return.

Let's take Line of Credit for example. If you borrow with prime interest rate of 7-8% pa, that is the cost of funds. If I can provide you guaranteed returns of 15-20% pa, don't you get a lot of money with nothing to begin with? If you think this is a scam, maybe you will stop reading.

Remember Robert Kiyosaki's words, reduce expenses. If you borrow $10,000 with interest of 8% pa for 2 years, your liablity is now $11,600 (based on compounded interest). If you pay back this borrowing over 24 installments, the monthly repayment is no more than $483/mth. Reduce your expenses, say, by $200 per month, you could be paying off these liability faster than you know.

At the end of the investment period (2-3yrs), you will get a return of between $14,470 to $15,960. The installment is your forced savings. You could either benefit from a returns of $2,870 (2yrs) from nothing, or see a savings and returns of $12,870. Did I showed you something practical and achievable?

It is time to start thinking and take action? Welcome to the world of money. I hope my idea benefit you.