You are never too young or too old to start investing. The trick here is just to start! Of course, the younger you start investing, the greater your rewards will be later in life. However, this is only applicable to some particular investments. When you are planning your financial future, it is not just enough to save money but also, to develop an investment plan for that money. With that plan, there are a number of investment options you can undertake in Kenya. As a first time investor, it would be beneficial to look into some of the following ideas below.
- Get a retirement plan as soon as you can
When you are in your 20s, your greatest financial asset is your time. The benefit of a retirement savings plan is the growth opportunity offered in it. If you start in your 20s you can accumulate up to 40 years of savings. When you get your first job, find out if they offer employee sponsored retirement plans. Employee sponsored plans often provide matching contributions that will therefore double your investment.
This includes buying short-term treasury bills & bonds, certificates of deposit and other money market investments. They can be used to generate additional income through the interest earned on each investment. They can also be used to generate a specific savings target to allow you to make a larger purchase.
- Investing in Education
Education is a good investment because it is able to open doors in the job market. As you go to school and enhance your skills, you are able to increase your net worth thus enabling you to get a better job and improve your cash position.
- Buying Real Estate
Though this has become debatable, one of the best ways to invest is in the purchase of a home or a piece of land. The reason the investment is debatable is because of environmental and market forces that may render the investment counter-productive. It is also very expensive and requires a large capital injection. Therefore, it is advisable to only undertake this investment when you are financially stable.