How can people with very low income invest from the money they earn?
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How can people with very low income invest from the money they earn?
The best investment to make is in yourself. Start by saving your own money. The old and true golden rule is to save 10% of your gross income. This builds your “nest egg”. If you can’t save 10% there’s no need to think of investing. So that’s the start.
While you’re saving that small nest egg research what investment opportunities are available, and what level of risk/return you are willing to accept. There are no magic investments that will make you rich overnight. Don’t waste time and/or money on quick rich scams. Once you have a small amount, go talk to your bank investment person. Any bank will give you a 30 minute appointment free. Go to several banks to get a good feel for what’s available. All this costs you is your time. A small investment with regular deposits in a GIC, fund or bond could provide a 3–10% annual return.
If you have a low income, it all depends on your spending power and motivation. If you have no savings, it’s best you focus on that first before you try to venture out into anything in particular. Make it a habit to write down your ideas. Any and everything you come up with can be useful in your quest. It does not have to be something new. Many things being done in the world is super inefficient and can be improved in many ways. From a lemonade stand, to a muffin catering shop, to a software company. You can innovate in many places. Also, education does not guarantee you’ll be smart, it simply gets you ready for the workforce, or prepare you for a subject matter. Make it a habit to research your topic of interest, go on youtube and search for audio books if you’re not a big reader.
A new skill is always more valuable than what you currently have so that’s also an option.
I would steer you away from initial investing until you can manage at least some money effectively, save, and have a little spending power, then test your best theory and see how best you could multiply it.