The day I decided to invest was both exciting and terrifying.
I had read somewhere that "the scariest part of starting is not knowing what happens next, but that's also the most powerful part."
Michael and I were sitting at his small dining table one Sunday evening, papers spread out, a calculator between us. I had saved up ₦50,000, and for the first time, I wasn't going to put it in the bank.
"I'm going to try what you've been saying, Mike," I told him. "I'm ready to invest."
Michael smiled, but not with the excitement I expected. Instead, he asked me a question that would shape my thinking forever:
"James, do you know why most people fail even when they get the chance to invest?"
I shook my head.
He said;
"It's because they bring a consumer mindset into the world of business. They think like spenders, not like owners. Before you put this money anywhere, you need to change how you think about money itself."
The Psychology of Money
Michael explained that money is like a seed. If you eat it, it's gone. If you plant it, it grows, but only if you protect it, water it, and give it time.
"Most people want to be rich," he said, "but they don't want to think rich. They want to live like kings before they've built their kingdom."
This was my first lesson in money psychology:
Poor mindset: "I need to spend to look successful."
Rich mindset: "I need to invest to become successful."
Thinking Like an Entrepreneur
Michael leaned back and said, "James, entrepreneurs see money differently. They see every naira as a soldier. Poor people send their soldiers to buy them comfort. Entrepreneurs send their soldiers to conquer more land."
He gave me examples:
Poor mindset: Gets ₦100,000 and buys a new phone.
Entrepreneur mindset: Gets ₦100,000 and buys goods to resell for ₦150,000, then uses the profit to buy the phone.
He even quoted Warren Buffett:
"If you don't find a way to make money while you sleep, you will work until you die."
Examples from the Real World
Michael told me about two men in the same city:
The first inherited a large sum, bought a luxury car, threw parties, and within two years was back to borrowing money.
The second started with almost nothing, bought used laptops in bulk, refurbished them, and resold for profit. In five years, he owned a small electronics store chain.
"The difference wasn't the amount of money they had," Michael said. "It was the amount of discipline and vision they had."
Rich Mindset vs. Poor Mindset
Michael scribbled on a sheet of paper:
Poor Mindset-------------------Rich Mindset
Spends before investing-----Invests before spending
Sees money as something to use------Sees money as something to grow
Afraid of calculated risk------Understands risk is part of growth
Lives for today------------------Plans for decades
Avoids learning new skills-----Invests in constant learning.
He pushed the paper to me and said, "James, whichever column you follow will determine your future. This isn't about how much you earn, it's about how you think."
My First Investment;
I finally took ₦40,000 of my savings and bought a small stock of high-quality drawer handles and wardrobe accessories from a supplier Michael recommended. I resold them within two weeks and made ₦8,000 profit.
It wasn't life-changing money, but it felt like a spark had been lit inside me. I finally understood why Michael always said, "Money loves movement."
I had planted my first seed. And now, I wanted a whole garden.
In Chapter 7 – The Friends You Keep, we'll explore how your circle of friends can either water your business seeds or crush them before they sprout, and why successful entrepreneurs are very intentional about who they spend time with.