Quora Answer: What is the Most Feasible Way to Invest Money Profitably When Your Income is Limited?

The following is my answer to a Quora question: “What is the most feasible way to invest money profitably when your income is limited?”

Before considering investing, you need to take a look at your finances to better understand your liabilities, your expenses and your liquidity.  The purpose of this is to find ways to maximise you income by cutting down on unnecessary expenses.  This is for you to build your funds to invest.  Keep this money separate from your normal expenditure account.

Once you have from $1,200 to $2,400, look for financial products that allow you to put in between $100 to $200 per month in either some form of an investment-linked insurance plan, or a mutual fund, depending on your investment horizon and risk tolerance.  This is not going to make money quickly, but managed properly, your ROI over a decade or so, assuming you kept to the same payment level, without top ups, is still from 30% on the total principal invested.  If, along the way, your financial capacity improves, avail yourself to other products.  It is an incremental build up.