I only earn a little, how can I really invest?
I know most of you when asked to invest from the amount you earn, you would simply say, me? With this little I earn? How?
Don't worry, even the richest people in the world did not start with massive investments. Investment is not necessarily about how much you have to invest, but how determined you are to grow your investment from TZS 100, 000 to hundred times bigger within a short time frame. It is possible and should do it.
WHERE TO INVEST YOUR LITTLE
There are numerous opportunities that your few shillings might find a comfortable home, we are simply not talking of going into real estate with your TZS 1m savings, as much as opportunities my present themselves to those who aspire, you should always shop around to match your little money with available opportunities.
The types of investments that do not need much are such as stocks, fixed deposits, as well as retail products such as food which are daily demanded by households.
Look at investments that do not need to set up an infrastructure like a leased space, vehicles, etc. Network marketing has also proven to be a lucrative investment opportunity that has already made people millionaires in Tanzania today.
THINGS TO CONSIDER BEFORE INVESTING
You would agree with me that losing the little you have could be the greatest risk you are trying to avoid, but hey? Don't forget that every investment has a risk, even the government securities have some risk exposures.
But before making any commitments, thing of the following;
Invest in things you know
Don't just rush to things just because other people do or tell you, be knowledgeable in any investment you want to do, if it is about stocks, then know how stock markets work, how you make money, and what kind of risks you are taking.
"Never invest in an idea you can't illustrate with a crayon" Peter Lynch"
Stick to your original plan
Don't be swayed, don't be led by bad news on the media or bad story from the gossip. All businesses have good and bad times, be determined and remain focused when the bad time knocks.
Calculate your risk
The world of just taking risk is long gone, the world today speaks of taking calculated risk, understand the risk your taking, measure that risk, and understand how that risk can be mitigated, you may need to see a risk management expert to take you through.
Learn and understand the bigger picture
It is very important to understand the sector where you are investing, understand how it is performing, the trend, and forecast, you don't want to invest in analogue while everything is getting digitalized, do you?
Please know that these are some of the issues you need to look at before making any investment decision, we can actually write a book on how to invest, and many have been written already. These are strictly for small scale investors, bigger investments of 1m dollars and above need more through process and advice from technical people.
Just don't wait for a sunrise while living under the permanent no-sun zone, put your little money together and invest today, start little and grow your investments.
Salum Awadh is a Dar es Salaam based business and financial consultant, you can reach him through
and 0786 092920