Saving and Investing with Limited Resources




it’s imperative we make hay while the sun shines, saving and investing your limited resources at the right time, will certainly keep your future bright and secured. It is definitely not a crime to be born poor but being stagnant and remaining in this provoking situation should be a crime punishable by law. Some people feel they must have a very huge amount of capital, income or wealth before they can start saving or investing, this is false because your resources can be maximized no matter how big or small

The first thing you should have in mind as a person who wants to accumulate wealth is ‘savings’. Savings is the power source of any stable wealth, to save is to pave the way for greater wealth. What you save is what you own and not what you loan. You should know that, it’s better to save and invest than to loan and invest. Savings is a habit of a well-disciplined business mind. After opening a savings account in a bank or an insurance company, don’t breach it, be diligent in your monthly commitment to the savings, no matter how inconvenient it may be, don’t break your line of savings.

You can’t have a successful line of investments, if you are not a committed saver, because things could go the wrong way. Remember as the saying goes; “little drops make an ocean” therefore, despite how small your savings maybe, it’ll surely save you the pains of being broke or bankrupted in future. Savers are good business thinkers and investors.

You can’t have a right mind of business if you lack the habit of saving and investing with limited resources. The question might arise, “how can I save and invest with my limited resources?,” the first step to take is to know your regular monthly expenses, what goes for what and where and how do you spend. Then decide on a monthly budget, which you will not exceed. At least save ten percent of your monthly income, try opening a fixed savings account or a life insurance savings. You know how much you earn, so make the best use of your earnings. Decide on what small scale business to invest in as well as when, where and how to go about it. Don’t make it a must to start up a big business at once, taking a loan might ruin you (you’ll pay interest too when paying back the loan, consider this)

Brainstorming small scale businesses is very important, do a feasibility study and don’t just jump into any business. Understand the product and be sure it’s what your environment needs. Let your business idea aim at maximizing profit in the long run, and since you have limited resources. Always start small, there’s no harm in starting small, the only harm is if you don’t start at all. Consider your location, the people in that location and their needs. Figure out if it’s an industrious place, whether there more of low-income earners or high income earners.

All these are quite necessary before venturing into a business, or else you’ll be wasting your limited resources and regret more on the unfavourable outcome of the decision you made. If for example, there are more of factories or industries in your company, then think of setting up a small canteen for factory workers. You can’t just venture into any kind of small scale business, remember your primary aim is to make profit and multiply it gradually on the long run. So know the needs and wants of the people in your environs. For instance, in a community of irregular power supply, you can come up with a small scale business idea of a charging shop or a dry-cleaning shop. If you don’t have enough capital, don’t go for a loan, start from home.

When you decide to invest, consider the periods of the year, in terms of if it’s close to Christmas or any festive season, then you should invest in complementary products. Also consider the seasons, dry or wet seasons, in a rainy season you can start a small scale umbrella business. Learn how to manage turnout and proceeds; know how to draft a simple but well detailed cash book, also purchase date, name of items (if you decide to invest on some other petty products with your resources), the price and the quantity purchased by customers.

Cash payment is mostly the means of payment in a small scale business, so creating a column for cheque may not be necessary. Understand sales, purchases, profit and loss, don’t sell below a cost price (the amount you got the product from the manufacturer or wholesaler). Don’t confuse savings with investments. Investments aim at return on business dealings, that is, turnovers and profits. Savings serves as a backup when investment is in a bad shape or an impromptu personal and very important need, needs to be satisfied.

Create a mind of saving, and develop an idea to invest in. No idea is too small especially when it fits into the environment and the life of the consumers you have in mind. Saving is a good culture and habit that everyone should possess especially those aiming for greatness. Start small and end big; that’s the game if you play it well, don’t wait till you have loads of resources, the right time is now. There are a good number of businesses (small-scale businesses) you can start with your limited resources, research and explore. Have the business environment in mind, imbibe a saving habit, make good use of your limited resources and expect unlimited returns as your business (small-scale) expands.



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