I used to think that investing required big pockets, where you need a substantial amount of money before you can turn a profit. I felt that probably a couple of hundred thousand was what you needed, but lately I have been thinking otherwise. What if it is not all about making big moves with big bucks? What about starting small for the little guy, something more like micro-investing?
Image by Piyapong Saydaung from Pixabay
I came across a video online where a young individual was talking about Bitcoin and how he got in early. That information did not pique much of my interest, but what stuck with me was when he said people have seen the price of Bitcoin at different levels and still did not invest. I think that it might be true that people are only interested in investing when the price is pumping and not when things are down.
The idea of micro-investing stuck with me strongly, of starting small, no matter how little it may be, over a long period of time. I do not know if it is all going to be a simple thing, but the challenge comes from being consistent. It can be hard to pay attention when there is so much going on for you at the moment. There is rent, there is feeding, and there is the daily urgent need for data, which can be the strongest challenge of all. One moment you have data, and the next moment it is all over. These little expenses, when compiled, can be a big one if you look at it on the grand scheme of things. It is not simple mathematics when it comes to investing, and I see why it can be exciting to wait for a large some before going ahead.
Currently, I am of the opinion that the true strength in micro-investing comes from consistency mixed with compound interest. Let's take an example that's ringing in my head at the moment. Imagine you started by paying a small amount of Bitcoin, let's say $10 every month. That means you would have gotten a different entry point for the same capital. It is easier said than done when faced with the different challenges of life and the bills that come with it.
I have a strong belief that the difficult part of investing is more of a psychological problem of waiting for the right time for something big to happen. It is interesting when you think about it. We are probably waiting for that big cheque, big win, a bump in your salary and even in some cases an inheritance. I for sure have had my fair share of waits for the right timing. Which is why I was of the notion that I probably should wait before making the big plays with big dough.
Now, over time, I am beginning to realise that there is no such thing as the right time or when something big happens. It might happen, or when it does not, what next? It is about how far and how I can start with the little things before I know how to handle the big ones. The world is not written in black and white, and there are many more things that could happen before the big break or more things that could require the big cash. This I have come to realise. Just start small, at least that's what I will do.
I am @samostically, a chess player and writer. I love to share the experience I have gained from different battles over the 64 squares and the knowledgeable insights from books I have read. But most importantly, I am a Midnight Owl and I founded the community Midnight Letters.
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