20/02/2025
If I waited to have "extra money", "excess money", K50,000 or k100,000 to start investing, I honestly don't know if I would have done much.
Measure oneself then take advice or recommendations coming your way
Not all well meaning advice is helpful or good for you
I have never invested K50,000 at a go!
But I have invested k200, k500, k1,000+ multiple times
With those amounts I've built a portfolio of over K900,000 (through my investments and returns reinvested combined) since I started back in 2020.
My first investment was in December 2019, Mr FWC before we were married or even engaged (lol) gave me k2,700 to invest for our future children
I bought the shares at k1,25 per share, those are now valued at k27,000 there about
Some would say it's not back looking at the years, and to you I ask, how much is the K2,700 you invested in December 2019 if you can trace it? Motivate the masses please
The shares we bought have earned great dividends in the few years that have passed, and we have continued to invest AGRESSIVELY.
As our income has gone up, the Mr has worked hard to ensure that more money is pushed in and the portfolio is now a marvel!
We didn't invest once and stop because we understand the principle of compound growth in many aspects
Even for my personal portfolio, I've continued to invest what I have, when I can as seen on my updates for the 52 week challenge (check pinned post)
In December 2024, I used most of the money that came from a government bond that matured
But I still promised myself to continue investing, in January I only managed a bond for K2,000 and K6,000 in February
I know others would rather save it and invest when it's a lumpsum, and that's a strategy too
Just don't allow the idea of waiting until you have k50,000 stop you from ever starting
In our household, we invest the big and the small amounts, and we celebrate all these and the returns from them with the same level of gratitude
We both have some bonds that give us coupons around k400
The last time Mr fwc received his k400, he texted me saying this week's fuel is sponsored by BOZ
Look here's the thing, he is in a full time job and does consultancy, he doesn't have time to add running a business to his obligations or hustles and so he chooses to invest those k5,000s rather than force things at the promise of getting a better return from an unknown business
I'm new to the world of businesses and one thing I've seen day in day out, businesses require attention if you want them to work!
I miss watching random videos on YouTube about people doing the van life and all the cute lifestyle vlogs of people living their soft lives
Now my feed is all about marketing, sales, business this and that, I'm even tired but I have to continue learning if I'm going to make it in this field
Now tell me how many people can manage to juggle a job, and running a business to success or to the point that losses are almost impossible?
I chose to invest first because even if my returns on some things are simply 10-20%, I'm 9.9/10 guaranteed a return on most of the investments
Now according to myself, I can afford to "experiment" or rather do trial and error with running a business because of my savings and investments
Some responsibilities won't wait for you to have things running smoothly, life must always go on
I've seen people fall into debt because of failed businesses, so much that it can almost be expected by most entrepreneurs
Let me end by saying, it's okay to only invest the minimum, BOZ wasn't making jokes when they said k1,000 is the minimum one can invest in Government Securities, you're better off having k12,000 earning you 20% in a year than not investing at all
A lot of countries admire us for this, because for some, retail investors can't easily participate in such securities unless they have the same k100,000s we are talking about
LuSE wasn't bluffing when they said the minimum is less than k10,
.or the brokers that allow for k500 minimums, with consistency and a proper 5, 10yr plan you surely won't be in the same place financially
Some unit trusts allow investing as low as k200 per month, if you won't do it for yourself, do it for your offspring or other loved ones
Now back to running a business, this too is a great path and certainly one worth trying! The great thing is that some businesses only require your skills to start, so we can say almost k0 and the return on investment can far surpass our imagination (or sometimes wipe our accounts or take them to negative balances) BUT IT'S DEFINITELY WORTH GIVING A SHOT
But remember, even when you are running a business, you can invest some of the returns in other things, because businesses are normally high risk, it helps to preserve your profits in other things as well
That's why when you research great companies to the core, they too invest in other companies, or take some money to other ventures
We need to move away from thinking business returns can only be reinvested in the actual business and nowhere else. You can set a percentage to take to other things if you like
Remember, it's not either or, you can strike a balance with your investments and you can also do what works for you (small consistent amounts, a big lumpsum or "excess" money)
I love you and the community we've built here, take care of your money and let's build wealth 💪🏾
©️Finances with Chipepo
Empowering African youth to turn their passion into profit through essential skills.
