Let us assume …
A few years ago, you graduated, landed yourself a real job, and started working for a fixed paycheck. From it, you paid bills, pinched, and saved whatever is left diligently. Month after month, you repeated this cycle until …
Now, you have RM 25,000 to invest.
It may not be much to some. But, to you, it is a significant sum as the 25 Grand is a representation of your labour. If that is you today, I feel you bro … after all, once upon a time, I was there too. I am not exactly one who had a silver spoon when I arrived planet earth.
Okay, let us focus on the RM 25,000.
You might be thinking, ‘FD rates are low. So, how should I invest my money? Is it better to put it into stocks, unit trusts, gold, or bitcoin to enjoy better returns for my money? What do you think?’
Here are my views:
#1: What is Your Investment Plan?
I wrote an article where I shared, ‘Investment is a Plan … not a Procedure nor a Product.’ You may click this link to read it after reading this article.
Or, should I ask, ‘Do you have an investment plan?’
Most invest without one. That is risky. It is likened to a builder who is trying his best to build a house without … a blueprint. Consequently, many failed to build sustainable wealth from investing. In most cases, these failures are not entirely the fault of the investment but … from the investors themselves.
It is perfectly illustrated by a simple write-up in Robert Kiyosaki’s book, ‘Unfair Advantage’. Here it goes:
FAQ: ‘Is real estate a good investment?’
Answer: ‘I don’t know. Are you a good real estate investor?’
FAQ: ‘Are stocks a good investment?’
Answer: ‘I don’t know. Are you a good stock investor?’
FAQ: ‘Is a business a good investment?’
Answer: ‘I don’t know. Are you a good entrepreneur?’
Source: Page 119 – Unfair Advantage by Robert T. Kiyosaki
You may ask, ‘What should I do? Where to start? How do I find myself a plan?’
That leads us to my next viewpoint.
#2: How Fast Can You Raise Money?
Here is one thing that I had learnt from Mark Chua, Best-Selling Author of ‘Who Says You Can’t be Rich Working a 9-to-5 Job’ and that is …
The More You Earn, The More You Can Leverage to Invest.
Let me add a point here. Even if you do not wish to leverage by taking on debt, you would still have more investment options if you earn more money. Does it make sense?
If you have RM 25,000 today and you are currently saving RM 500 a month for investment, you would have lesser options than one who is saving or raising as much as RM 5,000 a month … even if he does not have a single cent in his bank account today.
So, here is a question: ‘What is the difference between one who saves RM 500 a month from the other who saves or raises RM 5,000 a month?’
Is it frugality and thriftiness? Nope as there is a limit to how much you can ever pinch. If you make RM 5,000 a month from your job today, can you pinch more than RM 5,000 a month? It is impossible.
The answer, in most cases, lies in income or a person’s earning capabilities. So, if you currently make lesser than RM 5,000 a month, please read on, as I think, it could be an eye-opener to you.
#3: Can You Increase Your Monthly Income by 200% in 2 Years?
It means, if you are making RM 3,000 a month, I believe, your immediate focus is to boost your income to RM 6,000 a month. Similarly, if you make RM 5,000 a month, then, you should try aiming for RM 10,000 a month. Here, the idea is to increase your earned income which could be leveraged for investments.
You may wonder, ‘Can or not? Is it possible for me?’
I think, first and foremost, it depends, whether or not, improving your abilities to earn more money is a necessity to your financial survivability. If this is really a necessity, I suppose you will find ways to earn more money. Most likely, you are one of them as you are reading this article.
So, how to boost my earned income?
There are many ways to go about it. But, in general, the common denominator that I found lies in ‘The Art of Selling’. Your ability to sell has a direct impact to how quick you are in raising cash or make money.
‘But wait, I’m not a salesman. Are you suggesting me to be a salesman?’
In contrary, I think everybody, you and me, are salespeople regardless of what or how you perceive salespeople are today. For example, you are selling when you are interviewing for a job. You are selling your time, effort, expertises and commitment to your employer for a fixed paycheck. As for myself, I am selling my ideas to you so that you are happy enough to keep visiting KCLau.com and if you are reading this, I think I did a pretty good job as a salesman myself thus far. The bottom line is this – All of us are salespeople with something to sell.
#4: If I have RM 25,000 to Invest …
You think I have forgotten about it, don’t you? Nope, I did not go off track and am still in the subject.
First, if I have RM 25,000 to invest and I don’t have a plan on how to invest yet, I would place it in a short-term, like 3-6 month Fixed Deposits.
Second, I would allocate time for coffee with people who are making twice and thrice my monthly income, I would ask them for guidance. If they are willing to sit down and talk, great. I would be thankful. I hope you would too for they are offering gems of wisdom and their prices are… coffee. Occasionally, or in most cases, they are happy to foot in the bill. Most people are nice and are willing to ‘pay it forward’ when it comes to wisdom.
Third, I would spend time on improving my ability to sell. This is critical, if now, I am making anything lesser than RM 5,000 a month. Basically, there are only 2 ways to sell: By Speech or By Writing. Speech includes direct selling, presenting to a live audience … including KCLau’s webinars. Meanwhile, writing includes a range of different skills such as copywriting, advertising, and digital marketing.
In this case, you may read books about selling, marketing, or branding. Or, you may attend a seminar, a conference, or a workshop on selling, public speaking, digital marketing, social media advertising, … etc. To some, investing a portion of the RM 25,000 into a sales-related course could be life-changing as it brings massive changes in terms of your level of income.
After all, Sales = Income.
#5: But, I don’t have a Product to Sell
I believe there are many different interpretation of what selling is.
Here is mine. I think sales is about adding or creating real value to your clients in exchange of income. The value is based on how efficient you are in ‘solving’ your customers’ problems. Big problems command big sales dollars for clients demand better and higher standard of solutions for their problems. Therefore, if you don’t have a product to sell:
Firstly, you can create your own product. Perhaps, you can do something which people are willing to pay money for. You could bake, cook, write, teach, design, edit, program…etc in exchange for money. What are you passionate about? As for KCLau.com, we are passionate in bringing you the best financial ideas, thus, have created a dozen of online courses to transport you towards your financial freedom that you truly deserve. So, start finding yours.
Secondly, you can sell other people’s products for a commission. Perhaps, you are already a paying customer a product which you are passionate about. That is another good starting point to finding what you could sell. This requires few moments of thinking, researching, and brainstorming. I am pretty sure that you would come out with something if you sincerely have a burning desire to boost your earned income today.
‘But, I thought I would get typical answers like ‘Buy Maybank shares’ or ‘Invest in some Unit Trust funds’ or ‘Get into Real Estate’ for the question above. How about some typical investment tips for me if I have RM 25,000 to invest today?
Sorry mate. We don’t dish out typical or average investment advices for we do not have plans to be typical of average ourselves.
Remember: Investment is a Plan… not a Procedure nor a Product.’ So, the best and the most responsible answer I can share is – Start Having Your Own Plan if You Don’t Have One. Read this for more details.
To Your Financial Success!