How to accumulate capital for business or investments

Everybody knows that to start a business or to start investing, you need capital (in Bahasa Melayu, modal). This issue of finding capital to start with is also one of the reasons why many people do not invest nor save nor start a business.

Do these excuses apply to you:

1. “I have no savings at all to buy unit trusts”
2. “What’s left over from my salary at the end of the month is so meagre that I shouldn’t be bothering about investing.”
3. “Invest? Business? Are you kidding me? I barely have enough money to keep myself going.”

To start, let’s make it clear. There will never be enough money to invest or even form a business. However, we, humans, the breadwinner, have the power. We are the decision-makers. The issue of “not having enough money” is only in our minds.

The solution is simple. Make sure there’s enough money to plow into investments/businesses. How? Use the thing that sits between the tight few inches between our ears, my dad says. In other words, use our brain. Be creative.

If you are working and rely on your salary, try working out your budget. Try cutting down things that are unnecessary. Make sure your inflows are much more than your outflows. Don’t even be tempted to load up your credit cards. Bad debts are bad. Money will be enough if you make it enough. Cut down on those luxuries. Hey, who said journey of wealth creation is easy?

If it’s still not enough, then it’s time to get creative!

Let me share you a story that was told by a succesful property investor here in Australia. When he first started in real estate investment, he didn’t have any capital as well. He had a look at a land that he wanted and thought that it was a good deal. Problem is, he didn’t have any spare money. He went to his family members but was turned down.

So, he got creative. He telephoned his accountant. He asked him whether or not anybody he knows got money lying around doing nothing. The accountant asked why, to which he replied, “I’ve encountered a really good land for sale with lots of potential. Problem is, I don’t have any spare cash right now.”

The accountant asked, “What are you trying to propose?”. He said “Well, ask that chap if I could borrow that money for a while. For that, I’m willing to pay that person 15% of interest per annum.”

The accountant did approach the dude and the rest is history. Money was loaned to the guy, to which he paid for the land, and 12 months later, the loan was paid back, and the guy made a truckload of money. What did he do to the land is a story for the future.

Keyword here is to be creative. Not to forget, the need to work hard. As they say, you need to work your ass off.

Some ways to find capital:

1. Your own savings
2. Loans from banks
3. Loans from family members/friends/governments/employers
4. EPF
5. Re-mortgaging homes (if you don’t know what you’re doing, then this is not a wise thing to do). A lot of people got screwed because of this.
6. Apart from normal salary, aim for side incomes through part time work, and etc.

There are thousands more ways on how to find capital. Take note that a lot of entrepreneurs, businessmen, and investors started with nothing as well.

As they say, when there is a will, there is a way.

Kalau nak seribu daya, kalau tak nak seribu dalih.


Disclaimer: This article is not a specific nor general advice on managing or investing your money. This article does not constitute a recommendation nor does it take into account your investment objectives, financial situation nor particular needs.

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