You need money to make money. Right?
We all believe this classic axiom, that you need money to make money. This isn’t true. This is just an excuse for you putting off taking action or starting your own business. This isn’t true for the average 20-something looking to build money on the side because they can’t stand their job. You don’t need thousands of dollars.
Just the other day I shared why I thought you don’t have to invest money into your business just yet. This post received some great insights from the readers of Studenomics. One interesting comment came to me via email. I was asked a simple question by a long time reader:
When should you spend money to make more money?
When you have money coming in.
When you have money coming in this means that you have a decent idea that needs further execution.When I posted my freelancing challenge a few weeks ago, I wanted to see you take some action. If you did, good job! If you didn’t, you still have time. You don’t have to try to make $5,000 in freelancing income this summer. You can go for $500 or even $50.
Back to my original point…
I always promote the idea of getting your first sale or making your first buck. This is huge momentum for any young entrepreneur.
When you have money coming in this means that you’re onto something. This means that you can slowly start to invest some money into this side gig that you’re working on.
You’re totally frustrated with your results.
I know what it’s like to be frustrated with a lack of success. You’re working hard and doing all of the right things. Yet you’re not getting to where you want to be.
What do you do at this point?
One of the best investment options is to invest in yourself. I firmly believe in investing money to improve your situation. When you’re frustrated you can invest into consulting services, a conference, or even a book on the topic. Don’t let your frustration bring you down.
You need results NOW.
I’m an impatient man so I won’t judge you if you want results right now.
“A desk is a dangerous place from which to view the world.” — John Le Carre
Everyone single person reading this right now has the potential to snap one day. An annoying co-worker, stressful work day, lack of fair pay, exceeding bills, and personal stress, all can lead to you snapping.
I don’t want to see you totally snap. I do believe that you can get to the point where you’re about to snap, but instead you decide to take immediate action. This is how I started Studenomics. I was frustrated with my situation at the time. Instead of feeling sorry for myself, I decided to create an outlet where I would help others and keep myself motivated at the same time.
When you’re ready to take on a big risk.
There will come a time where you want to take on a big risk.
“Talk to any successful person. He’ll be happy to fill you in on his long string of failures.” — Seth Godin
Eventually you’ll stop worrying so much about failure. You’ll embrace the idea of taking on a big risk. This is when you can invest some money into your new business or side gig. You’ll find yourself investing more money and more time into your own projects. Only you’ll know when you’re ready for that big risk.
That’s when you should spend money to make more money. I’ll always promote investing in yourself as one of the best investment options.
This was inspiring, really. I’m a student myself and I’m trying to study and do some freelance work to cover my rent. Sharing a room at this moment with a friend – roommate and thinking about how to prepare myself and start a business – online marketing services for UK SMBs as soon as I finish studies.
Great article, glad I found it…
Well, I have a friend who is an entrepreneur and has needed *some* money in order to get his business off the ground. Having money can lead to making money but it depends on what you’re trying to do. There are some businesses that don’t require a lot of startup costs. And, if you hire a lot of freelancers, you don’t have to worry about benefits, insurance, etc. It’s a good thing in this type of economy.