SMART Ways of How To Invest & Save When You Are A Low Income Earner

By Florence Mukunya,

Saving is a very tough thing for most Kenyan youths, first of all they think that they don’t make enough money to save, others think it’s time consuming while others say they need to pay themselves first, you know; by buying the latest electronic gadget, the hottest shoes in the fashion industry and many other things that they feel they need and deserve. While many more feel they don’t get enough free money to save.

Eric Matu* has been getting sales jobs on and off and he feels that he wants to save and invest in the next one year so that he has a permanent means of income but he is among the many Kenyans who do not know where to start.

Well, I talked to Andrew Makhulo a financial specialist at MGK consulting and he had a lot to say on the need to save and invest as young and as early as you start earning. He starts by saying that, “It’s very possible to invest even with the least income possible.”

He adds that, “I would advise that such a person to open a fixed deposit account and save for a while and wait for the money to earn interest so as to expand the capital.” says Mr. Makhulo.

Mr. Makhulo says the interest helps in accumulating the money and then that money can be used to start a business as the actual money earned might be too little to start a business at once considering that the person still needs to take care of basic needs.

Many Kenyans who actually save feel that there are not many business sectors fit for their little earned and saved money but Mr. Makhulo says that there are actually many avenues for such people, all they need to do is do a proper research and be very creative before investing.

To give an example of businesses that Eric and someone else who might find themselves in such a situation we looked at a few of such businesses just to give an idea.

If you have something like special talent or skill that you would like to share with people think of marketing it and building yourself as a brand. There are DJs who have made a name for themselves by putting their music mix online and people who like their work contact them for shows and entertainment work.

Fruit salad and fruit juice are a favorite of many people. You can invest your money in this line of business and provided you find a good location and provide excellent services you can be sure to enjoy high returns for your investment. The business is doing so well I have seen fruit salad vendors bring fruits to the door step of my office. All one needs is to look for contacts and net work with people.

Mr. Makhulo concludes by saying that all Kenyans should embrace the habit of saving. “I would advice everyone who has not started saving to start now, it doesn’t matter whether you have employment or not but if you have any income make sure you save 10% of your gross income.”

Well there you go, a percentage of any form of income should be turned into savings as soon as one starts earning it doesn’t matter how young one is, saving and investing is not for the elders. It can and will be painful but for that better future it’s all worth it.

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