The Best Way to Invest Ksh. 10,000 a Month

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The Best Ways to Invest Ksh. 10,000 a Month

If you are able to set aside Ksh. 10,000 or $100 every month here are some best ways to invest the money and generate revenue. It is important that we have our money work for us.

You don’t have to wait until you have millions of money before you start investing that money. Everyone who has some money should learn how to put it into work.

Find the list of ideas below highlighting how to invest Ksh. 10,000 per month. Index-tracking mutual fund. This is the best way to diversify even when you have limited resources. This can be investing in S&P or other specialized index.

Invest in stocks as one of the vehicles to achieve financial freedom. The problem is that many people do not understand how to go about this investment. If you start investing in stocks first make sure you have a margin of safety. This is mostly in hard cash. Start with 6 months of savings to cover you expenses. This may call for more if you have children and a mortgage to pay. Start by saving Ksh. 10,000 per month. Savings do not have good returns considering the current interest rates. Savings will save you during financial emergencies. If you lose your job today or get sick unexpectedly, the savings will act as your margin of safety. Set aside hard cash to cover several months of spending.

Majority of the people are naturally bad investors. Many make decisions based on emotions rather than logic. Then they suffer the consequences. As you know, emotions have an effect of distorting our ability to make decisions.

Avoid the mistake that many investors make, they stupidly buy stocks when they are high and sell them when they are low. This should not happen to you.

If you listen to our investment advice, you will easily avoid this trap. We want to encourage you to dedicate Ksh. 10,000 and invest it towards buying stocks. Doing that over a long period of time. Buy stocks from different companies. That way you will protect yourself from the risks of one company’s stock fluctuating in prices.

Other experts advise that we should invest Ksh. 10,000 every month on individual stocks. This may not seem appealing to many people. Experts have estimated that for beginners you may lose up to 20 percent of your investment. This is caused by the fact that you pay commission to buy and sell stocks and the stock brokerage fees involved. Note that if you are not investing substantial amount of cash, you may never receive great returns.

For new investors, the first step should be to do some analysis before choosing stockbrokers. If you do your homework well, be sure that you will strike a great deal. Going for an affordable broker is the best option for a new investor.

When you buy individual stocks, you are more likely to outperform the market trends over the long-haul. If you hold a quality stock for decades may pay a good dividend. If you find that commissions are eroding your investment, then you can save till you get Ksh. 30,000 and then make regular purchases every three months. This way, you will reduce your cumulative commission costs. This is the best advice I have ever received.

Investment Options

  1. Keeping the money in a safe

If you stash away, Ksh. 10,000 per month under the mattress for 10 years. What will that be? In a year the accumulated savings will be Ksh. 120,000. After 10 years, you will have accumulated Ksh. 1.2 million only.

2. Stashing the Money in Savings Account

If the savings account is offering 8% interest per year, what will my Ksh. 10,000 lead to in 10 years? Keeping your money in the right place will earn you more money. I encourage those of you who are hording money in their bank accounts to put it into action.  Let money work for you. Invest. This is one of the ways to create jobs for unemployed people out there.

READ MORE: Investment Tips- Learning from other’s Mistakes

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Editor-in-Chief

Geoffrey Kerosi is a prolific Kenyan writer based in Nairobi City. He holds a Bachelors in Economics and Statistics and is currently pursuing Masters in Public Policy and Administration (MPPA) from Kenyatta University. Email: info@kerosi.com. Whatsapp: +254713 639 776 YouTube: Kerosi TV

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