You have started in the right direction since you are considering investing your money. And it makes a lot of sense that you do not think what you want to start with is small. So Congratulations!!!
Also, it is essential to emphasize that no amount is too small to start investing. No matter how small, you should see your days of little beginnings as a foundation for building a brighter future through investing.
Now let’s talk about that money you want to invest.
Invest in an emergency fund
An emergency fund is an amount of money that you set aside for the sake of unplanned expenses. I advise that you have up to 6 months of your monthly salary in this fund. Of course, you are free to determine what yours will be. But having it provides a necessary buffer in case of an emergency.
This is important because if you don’t invest in this, you may not be able to do other forms of investment successfully. The emergency fund usually sits in a savings account not invested at all. For a simple reason that you may need to use it unplanned. That’s one option. And it is assuming you don’t have an emergency fund yet. If you have that setup already, then we can move on to the next option.
Invest in fixed income plans
We all have different risk profiles. Some people can take on more risk than others. For those who can’t take on any risk at all, fixed-income investment offers them a safe path. The way fixed income works is that you know ahead of time when your investment will mature and how much you will get on maturity. That’s why it’s called fixed income.
So if you invest your 10,000 Naira for 1 year and the rate of return is 10%, then at the end of a year, you will get a sum of 11,000 as a take home. Does that sound great? That you can know ahead of time what interest you will earn and when you will get your funds back? If it does, then why wait?
Click on Stress-free wealth management image below to start investing in a fixed-income fund today.
Invest in real estate funds
You will wonder if it were possible for you to invest as little as 10,000 Naira in real estate. Yes, it’s possible and Risevest made it available for all. Your 10,000 Naira is joined with that of 100+ more people and is used to buy rental properties.
Once you have subscribed to that, you start earning income as the property is earning rent or capital gain upon sales. Unlike fixed income though, the returns are not predetermined and it varies from month to month. Again, Risevest got you covered on this.
Invest in a Stock Index
Stock Indexes are a basket of stocks lumped into a basket for you to buy. Such that once you buy part of the basket, you would have bought all the 40 (more or less) stocks in the basket at the same time. And historically, stocks have been the best-performing asset. It has returned gains that surpasses both fixed income and real estate. However, it’s riskier to invest in stocks than real estate and fixed income.
So you have got to have an appetite for risk to invest your 10,000 Naira in this. And the best part is that Risevest has developed a means to make investing in a stock index with as little as 10,000 Naira available for everyone. If you invested in Risevest Stock Index last year, you would have made a whopping 40%. And If you have invested from the beginning of this year, you would also have made 12% year to date.
You can start by clicking the image below.
Investing starts with developing the “habit of investing”. Starting small with 10,000 Naira is a very good way to start building that habit. Once you have developed the habit, it will be easier to grow wealth from there. With as little as 10,000 Naira, you can start today, either to invest in an emergency fund, or fixed income, or real estate or stock index.