You Don’t Need Money to Make Money (at first)

Summary

• I see many young people trying to invest small sums of money, like $1,000, to get rich.
• They often use compounding calculators to project becoming billionaires with high returns over decades.
• In reality, they might invest in something volatile, like Dogecoin, and lose their money quickly.
• Instead, I advise using that $1,000 to learn how to make more money by improving your skills.
• If you increase your skill set by 50%, you can increase your annual earnings by 50%.
• Focus on active efforts and actions to make more money rather than speculative investments when you're just starting.
• Learning how to add value to your work and grow your skills has a more reliable payoff in the long run.

Video

How To Take Action

A good way of doing it is to stop thinking about investing small sums of money to get rich quickly. Instead, use that money to build up your skills. If you have $1,000, put it towards something that will make you more money in the long run.

Here's how you can do it:

1. Invest in Learning: Spend that money on courses, books, or workshops that teach you better skills in your field. For example, if you're in sales, take a course on advanced sales techniques. The new skills you learn can help you earn more money.

2. Network: Use a part of that money to meet successful people in your industry. This could be through attending events, or simply taking someone experienced out for coffee. Building strong relationships can open up new opportunities and insights.

3. Upskill: Focus on improving what you already do. Identify the top skill in your field that has the most impact on your income. Take specific actions to get better at this skill. Practice, get feedback, and keep improving.

4. Read and Apply: Get books or online resources that teach practical skills. Don’t just read—apply what you learn immediately to your work or personal projects. Action is what makes learning valuable.

5. Small Experiments: Instead of putting all your money in risky investments, use a small portion to test different ways of making money. Start a small side hustle and learn from it. If it fails, you’ve only lost a little, but gained valuable lessons.

By focusing on actively improving yourself, you'll see a much greater return on your $1,000 than by risking it all on volatile investments. Skill growth will reliably increase your earnings over time.