Biodun works as a coordinator in a consumer goods factory. He earns 60k every month. He spends a lot of money on transport and upkeep and he is able to save about N15,000 every month.
Can he invest money?
When some people come across our ads, they ask, ‘Can low-income earners also invest?’.
Many Nigerians assume that investing is for the wealthy and accomplished. Some others, especially young people think investing is for those who have made millions of Naira. Others believe one needs to earn a decent amount of money before considering investments.
Contrary to these beliefs, the lesser you earn, the greater the need to invest. This is because investing can provide another source of income. This is called passive income, because you are not actively working for it. Also, returns from investing can facilitate a shift from low income to steady income.
What does it mean to invest?
Investing is the process of committing resources to something to get rewards of higher value. No matter who you are or what you earn, you can commit your resources and earn returns from it. When you invest money, you are simply putting your money to work for you.
Investing is not about how much you earn, but about how much money you are willing to put to work. Your earnings should not limit your decision to invest. Rather, it should be a motivation to invest.
As a low-income earner, examine your financial strengths and weaknesses and let them guide you in setting goals and determining the most suitable investment vehicle for you. You can start by accessing your financial position and understanding your cash flow (how much money comes in and goes out) then map out goals which will guide you in choosing the right investment options for you.
How can Biodun Invest?
In Biodun’s case, he needs a safe investment option that helps him preserve his money, while also getting regular returns that are better than saving in a bank account. Biodun can start investing with just N10,000 in a Mutual Fund like Cordros Money Market Fund. The mutual fund is open ended and he can continue to add more money as he pleases. Biodun will also enjoy liquidity, meaning he can have access to his money when he needs it. With Cordros Money market Fund, Biodun will be able to save and invest at the same time.
Are you ready to invest or would you like to know more about investing? Call 0700 267 3767 or send an email to [email protected].