This Is How You Can Invest Even With Little Income
Have you ever considered beginning an investment adventure but kept putting it off? Perhaps you’re worried about where to invest or how much to invest because of your meager income.
The majority of people with meager incomes ponder how to invest their meager funds, and they are right—it’s not simple. That doesn’t mean it can’t be done, though; all you need is a brilliant idea and a well-thought-out plan to carry it out.
Expert in finance and investments Aya Laraya says that investing is like purchasing a day off from work. You would want something like this, I’m sure. Nobody wants to labor in a job they detest for eternity or meager pay, after all.
“Investing puts money to work,” as noted author and business coach Grant Cardone puts it. “The only reason to save money is to invest it,” he continues.
You cannot, then, hate the little you are producing. The ability to use it wisely is what counts. And by doing so, you purchase many more days without having to work.
When you first start investing, the most important thing is to develop the habit of consistently saving and investing money, not how much you invest.
Due to Kenya’s diverse economy, investors have a wide range of investment opportunities to choose from that can lead to both growth and financial security.
Put money into mutual funds. Money Market funds are a type of investment strategy that collects money from multiple participants and uses it to purchase a chosen portfolio of securities to meet the trust’s goals. Investors receive compensation in the form of interest in exchange.
You must register an account with the chosen fund manager to make investments in money market funds. A newbie can invest safely in money market funds because they are a low-risk investment program.
You can also invest with as little as Kshs. 500. With this type of investment, you can take money out whenever you need to and it has an average yearly rate of between 8 and 12.5%.
Investing can also be done through purchasing bonds and government bills. The government issues Treasury bonds, which are long-term investments lasting more than a year, and Treasury bills, which are short-term investments lasting less than a year, to raise money for certain of its programs. A novice investor would benefit from this program because of its minimal risk and potential annual return of 16.32%.
Investing in government securities involves creating a CDS account with a local commercial bank or the Central Bank of Kenya.
For treasury bills, you can begin investing with a minimum of Ksh50,000, and for treasury bonds (M-Akiba), it is Ksh3,000.
Dividend stocks are popular among investors because they offer a consistent income stream with less effort required, akin to bank account interest but with a higher potential for return on investment. The compounding effect of dividend income boosts your earnings when you reinvest it.
Publicly traded companies that offer dividend stocks are ones that you can purchase, keep, and sell for a profit whenever it’s convenient for you. They may distribute a percentage of their income to shareholders on a monthly, quarterly, or annual basis.
The NSE (Nairobi Securities Exchange) lists these businesses, and some of the top dividend-paying equities in Kenya have dividend yield rates higher than 11%.
Become a member of a SACCO, or savings and credit cooperative. Members of SACCOs receive a variety of financial advantages, such as low-interest loans, dividend payments that yield a return on investment, and the promotion of frugal saving habits. Because a member’s minimum monthly payment might be as low as Kshs.1,000, it is appropriate for investors with modest incomes.
A registration fee, often Kshs. 1,000, is required to join a SACCO. This amount varies depending on the Sacco. You have to pay the minimum amount of shares required to become a member. Depending on the amount, this can be paid in one lump sum or monthly installments.
There is a minimum amount of money that each Sacco requires monthly deposits from you. These deposits are multiplied to provide you with a loan; they are not withdrawable.
A fixed deposit is a type of investment that banks offer. Customers can lock up money for a predetermined amount of time and receive attractive interest rates.
It is appropriate for someone who wants to begin investing because it is risk-free, fixed returns are guaranteed, and you can invest any amount of money.
To invest in fixed deposits, you must first create a commercial bank account.
Enter the agribusiness sector. Kenya is a nation engaged in agriculture. The days of thinking that people in the village and those without formal education should engage in agriculture are long gone. Because people need to eat, even the most educated people nowadays go into agriculture for profit. This is why agribusiness is so appealing.
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This Is How You Can Invest Even With Little Income
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