Believe it or not, a lack of capital is always “a problem”. 

This problem is not just one for people who have below $1k under their names. Rather, it is also for people with 6-7 figures in net worth and even millionaires. I believe a lack of capital is a common problem. What’s uncommon would be the approach we choose to take to resolve this issue. 

Here’s an example: 

In 2017, I studied stocks listed on SGX and found DBS. At that time, its price has ranged between S$25-S$30 a share. Thus, the minimum capital to invest in 100 DBS shares was S$2,500-S$3,000 or RM 8k-10k. I found that to be quite hefty or even “unaffordable”. 

But nevertheless, I continued to study DBS on a quarterly basis, as if I’m already its shareholder. No cash is one thing. No believe that I’ll own this stock is totally another thing. 

3 years later in 2020, the pandemic hit. DBS fell to S$18 a share and I have been saving / raising capital in 2017-2020. I was familiar with DBS for I have studied it for 3+ years. So while the world was panicking, I invested in it in April 2020. The decision to invest was simple (but it was 3 years in the making). 

Fast forward today, DBS is priced at S$ 33.35 a share. I earned S$5+ in dividends to-date. From this example, I imagine – “Would I had invested in DBS if I held on to the belief of “not enough money to invest”?

I did the same with real estate. 

I learnt about real estate investing despite not having much capital. Perhaps for some, it doesn’t make sense. “No money to invest, learn for what” But, my take is different. Learning is about expanding our vision of what’s possible. It’s about exposure, about being aware and having options. 

Often, people ask: “I have RM 100k. What should I invest in?”. These are people who have money but may not have the education, experiences, options … as to what they should do with their money. 

But for myself, it’s the opposite. Education comes first and money is raised later on a gradual basis. So when I have the money, I have a plan for it. 

In the end, “a lack of money” is not exactly that bad an issue. A bigger problem, in this case, is a lack of vision, belief and education. How we choose to resolve / tackle this issue is vital as it will determine the level of our financial success. So, will a lack of money be a stumbling block to investing?

I’ll leave such to you. 

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Ian Tai
Ian Tai

Financial Content Machine. Dividend Investor. Produced 500+ Financial Articles featured in in Malaysia and the Fifth Person, Value Invest Asia, and Small Cap Asia in Singapore. Regular Host and Presenter of a Weekly Financial Webinar with Co-Founded, an online membership site that empowers retail investors to build a stock portfolio that pays rising dividends year after year in Malaysia and Singapore.

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