You have 500 euros, where do you invest it in if you are going to follow this blog. The answer might be easier than you thought, keep reading for 5 tips to invest your hard earned cash!
1. Invest in what you know
This might seem straight forward, but a lot of people, or first time investors get distracted by all the zeroes they can earn with investing in random goods. Even though it might work for you, most of the times you will have no idea what the trend of the good will be, what will be in “season” if you will. By learning the market niche you want to invest in, you’ll be able to better establish yourself and create a better overview, of goods you know will sell.
2. Never trust anyone while investing
I guess this should be a top tip, but people are more often able to give you false information, or even rip you off without you knowing. So if you are going to buy goods online, be sure to always pay on the spot after you’ve seen the goods in working order and do not work with down payments, or pay first before you receive principles. Just take the extra time and effort to pick it up yourself and reduce your risks.
3. Do not be afraid to back away!
More often than not, people will bite into an offer as if their lives depend on it. This results in people reducing their margins so much that if you factor in your costs for pick up, you actually lose money than make. It is a trap that people fall for, transport is never for free! So if your max to spend is say, 150 euros for a 70 euro profit (great margin!), do not settle for 200 euros, unless you can pick it up by bike, your transport costs will be higher and thus your own profit margin when flipping will be way lower or non existent. And more often than not, you might get a discount if you just dare to walk away!
4. Keep track
Make an Excel sheet, or One Note page with all the prices you payed and what you are aiming to sell it for. This way you always keep track of what the costs were. I like to stick post-it notes on the goods as well with the price I payed for it. This saves me in mistakenly reducing prices without me knowing for sure what I payed for it originally.
5. Never ever tell all that you know
With these tips to invest your 500 euros you should be safer, more productive and hopefully more understanding, of the overall concept and thought process I keep rolling over and over in my mind. It might safe you some bogus deals of which I had a lot.
Hope you enjoyed the read and learned something along the way and I will keep you updated about any progress I made. For now my simulated net worth is -5 euros.