Do You Need Money To Make Money?






Most people say, You Need Money To Make Money? YES, Money doesn’t fall from the sky or money doesn’t grow on trees. You need money to make money. Such statement can be correct but sometimes incorrect. Why do I say so, I will explain below

If you want to generate money, you must have money to do so.

The reality is that, you can’t get rich without investing capital to certain money making project.  All businesses spend huge capital to conduct their business operations. A business owner must have money for salaries and wages, budget to purchase merchandise stock, pay office rental, spend money for breakages and loss of stock, pay fuel, taxes etc.

Same goes for you, as individual. You must have money for transport, i.e. bus/taxi/train ticket, money for lunch box, working clothes, medical fees in case you get sick. The whole idea is to travel to work,  being healthy and in proper clothes or uniform. These are your monthly expenditure, you deduct from your salary.

Indeed, you need money to make money. I agree with this statement, Whoever, tells you that you can do so without doing anything from your part, is misleading. 

Why do I sometimes differ with such statement?

Yes, money doesn’t grow on trees. If you want to set up any business project, you must raise capital (money). You can do so by applying for a loan. Or you can ask a family member, friend to lend you minimum cash.

What if these attempts don’t work. Do you quit. Quitting all your dreams & ambitions. I don’t agree. If you’re working it doesn’t matter how much you earn. You need to put away at least 10% of your income. I know, it may take you years to raise sufficient income to set up a small business.






Learn from companies who are listed at New York Stock Exchange. the method they use to generate wealth is to invest, from their month/annual profit, They put way certain amount (10%). They invest that amount by buying shares at NY Stock Exchange. The money grows overtime, and after few years, the company is in stronger financial position than before.

During any financial crisis, like the one you see in 2020, they sell portion of their company shares to maintain company financial stability. The same rule applies to you as individual A requirement to build consistent wealth is to have a percentage savings plan, which is used to build capital. This is a must.

Having a percentage savings plan simply means that you save a certain percentage of your income every month. This may certainly sound unfeasible for those people who aren’t using a plan like this (all of their income is already being used!).

If you can force yourself to implement a percentage savings plan, then your disposable income will be reduced and your spending requirements will also gradually decrease accordingly. This may be difficult at first, but it will soon become an easy habit. When you start this type of savings plan for the first time, you should implement it on a very small scale so that the change is not too drastic

The statement, do you need money to make money? It may be true, sometimes it may be incorrect. You can raise capital yourself







Leave a Reply

Your email address will not be published. Required fields are marked *