Did you know that a shilling invested in your 20s is worth much more than one invested in your 40s? If you are familiar with the math of compound interest then you’ll certainly be in sync with this statement.
In other words, if you are reading this article and you’re in 20s or thereabout you’ve got just the perfect chance to launch your dreams.
So listen keenly as we point out the 4 avenues that you need to start investing in. Feel free to ask questions using the comment box and as usual, we will respond.
4.Invest in stocks
Let’s take one real-life example here. In 2014, the Nairobi Securities Exchange (NSE) offered its shares at a price of Ksh9.50 in an Initial Public Offer (IPO). Today the shares are going for Ksh19.50. Now if you bought those shares in 2014 then today you would have doubled your money.
How? Let’s say you invested Ksh9,500 to buy 1000 of those shares. Today, your 1000 shares would be valued at Ksh19,500 translating to a profit of Ksh10,000 which is 100% profit for you.
1000 shares x Sh9.50 = Sh9,500
1000shares x Sh19.50 = Sh19500
Sh19500 (Current value) – Sh9500 (IPO value) = Sh10,000 (Profit)
Clearly, if you start investing in the stock market today your personal and business finance health with be in a sound state when you hit 40. To learn more about stocks read one of our previous blog articles titled Stock Trading Tips and How You Can Get Started in 2015.
3.Start Small In Real estate
Land has been outperforming the stock market in terms of returns for almost a decade now. With a plot of land fetching as much as Ksh200,000,000 in Upper Hill Nairobi, every serious investor needs to think about jumping onto the bullish property market bandwagon. Again, here’s a practical example:
Pic: Israel post
A few years back, land in most outskirts of Nairobi was going for a cheap price of Ksh300,000 (Kitengela, Ruiru, Thika etc.). Today, that same land is going for Ksh5,000,000. If you bought it 10 years ago, today you would be talking in totally different terms.
So, take land matters very seriously in your 20s and you’ll reap generously as you grow old.
2.Invest in business
If the other three options (i.e. stocks, real estate, commodities) sound like ROCKET SCIENCE or GREEK MYTHOLOGY to you then probably you need to think of engaging in business ownership. Start a small business that has good margins and capability to grow.
Keep marketing and keep ploughing back the profit until the business becomes fully-fledged. You’ll never regret venturing into business at a young age.
*You can pick one business idea here<<
*You can find some ideas for capital here<<
1.Invest in yourself
You are the single most important asset in your life.
*Invest in your mind
At this age you should be thinking about furthering your education and expanding your scope. Invest in learning but most importantly LEARN BY DOING.
A section of Kuza Biashara audience in a recent training event.
For example, if you invest Ksh5,000 in learning about real estate business, then invest Ksh100,000 in “doing” what appertains to that line of business. Learning alone (without doing) will not help you in any way.
*Invest in your family
Your family is the most important team you’ll ever have in this life. See to it that you create good relationships with each member of your family. Be careful enough not to burn bridges with anyone.
*Invest in your health
Don’t forget to keep fit and eat well. Don’t use drugs or steroids. Do what it takes to stay healthy…this can save you millions of hospital bills. 
Play by these 4 cardinal rules and you’ll not regret when you grow older. KEEP IT KUZA BIASHARA for more educative articles.
