WHERE TO GET MONEY TO INVEST

SAVINGS
This is an age long principle of building wealth. Anyone who is desirous of achieving financial independence must not treat it with levity. The book of proverbs has this to say about savings. A wise man saves what he would need but a fool spends it all." You need money to buy shares, so save! Experts recommend that 10% of what you earn should be saved. I have said earlier on that you do not have to have hundreds of thousands before you start investing in shares you can get started with as little as five thousand naira (5,000). Stop keeping your money in a savings account, where the rate of return is poor, except it is for a target. Please don’t tell Tony Elumelu and Jim Ovia that I told you. Be wise!
SOFT LOAN AT WORKPLACE
It is quite unfortunate that most people who take salary advance and loans at their workplace only use it to acquire liabilities, like a car, or to meet an urgent need. You can however, decide to take advantage of the salary advance or the I owe you (IOU) at your workplace to invest in the capital market, when prices are down, so as to take advantage of capital appreciation. You must however, have a good knowledge of the capital market before you invest in shares.
Your could also use loans from cooperative to buy shares instead of using it to acquire liabilities.
SHARE PURCHASE SCHEMES/TRADING FACILITY
Some banks now have special facilities for those who want to invest in shares. This is usually backed by a collateral. Some stock broking firms also give some of their reliable clients credit to purchase shares on which a little interest in charged. Contact your broker or your bank for more information on this.
SALES OF ASSET
This is strictly for matured investors. A wise investor can also sell some of his idle assets such as abandoned cars and some other depreciating assets. The proceeds can then be invested in shares. This is because sometimes people keep depreciating assets that they do not have plans for unprofitable assets can also be disposed of.
LOAN FROM COMMERCIAL BANKS
This is strictly for matured and sophisticated investors who are skilled in the art of speculation. This is because loans from banks attract interest rate. There are so many people that are already doing it. but you have to be very smart so as to beat the interest rate and still make some gains for yourself. This could be done successfully during bearish period when people are selling their shares and prices are falling rapidly. An investor would just take position and wait for the bearish period to be over. An investor can also take advantage of this facility when prices of some stocks are unnecessarily low. The investor must however be sure that the fundamentals are right, before he commits his money. For instance, if you had borrowed a loan of N18million to purchase 1 million units of Dangote sugar refinery during the offer for sale in December 2006. Your investment is worth N38million as at May 22nd, 2007, assuming the interest rate is 30%, you will still have 70% to yourself.
This strategy is called making money from other peoples’ money (OPM)
Be Wise!