This is a super common question that we hear from people who are interested in getting involved with LEGO investing and reselling, but haven’t yet bought their first set.
It is totally understandable. With most investment vehicles, you will hear that there are some barriers to entry when it comes to the amount of money you need to start.
Some Investments Need a Certain Amount of Money
Real estate, for example, is known to be difficult to get started in until you have a sizeable down payment saved up. Although this is not entirely true, and there are ways to buy your first real estate investment with low or no money down, it is unmistakably more difficult to do so.
This can also be the case with the stock market. When opening a new mutual fund, for example, you will find that many of them have a minimum buy-in. In some cases this can be $2,500 in the United States. Although again, there are of course with the right knowledge you can buy individual stocks with just a few cents if you wish, and you can also buy ETFs or index funds to track the S&P500 without the need to buy in to a mutual fund, but many people are not aware of these options and believe that mutual funds are the only option for them.
LEGO Investing Is Different
With LEGO, we can get started with $10 if we want to. All it takes is to go out there and buy your first set. Then gather some more cash flow, and go buy another. But is it worth investing such low amounts? When does it become worthwhile?
Here’s the thing.
With an average return of 7%, investing $10 in the stock market is not usually worthwhile unless you will be adding to it. After a year, you would have $10.70. Nothing to get too excited about, right?
But with LEGO, you can double your money, if you know what you’re doing. Now the $10 becomes $20. That covers lunch. Now invest the $20, and next year maybe you can have $40. Do this for 5 years, and if you can consistently double your money, you will have $320. Do it for another five years, and you’ll have $10, 240.
Yes, you read that right. If you learn how to double your money every year with LEGO investing, you can turn $10 into $10,240 within 10 years.
Now this is of course breaking everything down to the most simplest form, and using extreme examples. In the real world, you probably won’t double your money every single year. Some years you will, but others you may make closer to 60 – 70% returns. This is still an incredible return.
Now imagine if you invested $100 to start with instead of $10!
Just Get Started!
The other important thing to remember is this.
LEGO investing takes courage, discipline, and patience. Although it may not seem worthwhile to start out on this journey if you don’t have much money to invest at the start, I would still recommend that you buy a few sets.
Why?
Because getting started is the hardest part. You need to just start. Start buying, so you can feel what it is like, and get used to it. Start buying so you can make some mistakes, and learn from them. Start buying so you can get the ball rolling. When you have more money to invest, you’ll then have the experience you need to make smart investment decisions.
How much money do you need to get started with LEGO investing and reselling?
The answer is – as much as it costs you to buy one unit of the set you have selected. If it’s a $8 set, great.
Money should not be the barrier to you getting started with LEGO investing. There are other challenges you need to deal with of course (check out The Four Things You Need to Do Before Investing In LEGO for tips).
Sure, you do need money to make money in this business. But you can start slow, and build gradually.
Over the course of a few years, it will be worth it.
Now go out there and get it!
If you want more strategies for investing and reselling, make sure to check us out on YouTube, where we give tons of more experience and strategies for LEGO reselling and investing. Also, we have a free Facebook group – join if you would like to learn from like-minded LEGO investors.
How much money did you invest when you started your LEGO investing and reselling business? Let us know in the comments!
