How To Get Money To Start Investing

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“It takes money to make money.”

You’ve probably heard this expression before. And when it comes to investing, this is usually true. Wayne Gretzky said, “You miss 100% of the shots you don't take.” And without capital you’re sidelined, missing 100% of the opportunities to take a shot.

Likewise, Charlie Munger once said that anyone seeking financial independences needs to hustle hard and do everything in their power to accrue $100,000 as fast as possible.

Once you have $100,000 invested and working for you, compounding at say 10 or 11% per year, things get easier. Or as Munger put it, “After that, you can ease off the gas a little bit.”

With that in mind, here are three ways you can accelerate your capital.

1. Ask

In his book, Learn to Earn, the greatest investor of all time, Peter Lynch, suggests that young people raise their investment capital by asking their parents or grandparents for money.

Christmas money, birthday present, early inheritance, stock transfer as a graduation gift…

On a larger scale, this is what hedge funds and wealth management firms do when they go out and solicit investors.

2. Keep You Expenses Low

There’s a surprising amount of controversy surrounding the concept of saving money.

Some people preach extreme frugality, others say that spending lavishly attracts greater sums of money through “wealth magnetism.”

Here’s what Wall Street legend Sir John Templeton had to say on the matter…

In his book, Templeton Plan, Templeton wrote, “If you earn a dollar and spend a dollar ten, you’ll be a failure. But if you earn a dollar and spend ninety cents, you’re on the road to success!”

Like Charlie Munger, Templeton said, “If you want to become really wealthy, you must have your money work for you.”

Templeton wasn’t against enjoying life, he did all his investing from his giant mansion in the Caribbean, but he understood the importance of letting your money work harder than you do.

3. Start A Business

Saving money is nice, but it is also finite. You can only cut back so much. Making money is infinite, there’s no ceiling to how much you can potentially earn.

That said, starting a business is also risky and unpredictable. There’s no guarantee you’ll earn anything. And even when you are making money on your own, the earnings can be inconsistent compared to a traditional 9-to-5 career.

That said, the rewards are absolutely worth it. And if you can start a low-risk side business while collecting a steady paycheck from your main job, you’ve eliminated most of your potential downsides. The extra money your business brings in can be redeployed into long-term investments, putting your money to work for you.

And who knows? Maybe you hit it out of the park with your side business and it becomes a multimillion dollar venture.

Either way, starting a business expands what’s possible.

And when you blend the potential upside of entrepreneurship with the steady income from a traditional paycheck, you enjoy security and opportunity.

The best of both worlds.

Bank Boldly. Climb Higher.

Peak Bank offers an all-digital banking experience, providing all the tools and tips you need to make your way to the top. Take advantage of competitive rates on our high-yield savings account and get access to a suite of smart money management tools. Apply online and start your journey today.

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Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.