Consumers Guides

How To Invest: Salary Earners.

To invest,  in simple terms is to distribute money in the expectation of some benefits in the future called returns. Figuring out how to invest money in order to effectively set you up for future success or emergencies can sometimes be a real challenge.

A salary earner is like everyone else that works and earns except that he or she has a fixed monthly income. This implies that investments and expenses have to be managed strictly according to a fixed income. Therefore, if you’re a salary earner, you need to:



A budget is a financial plan for a defined period. Budgeting is the simple exercise of reconciling your income with your expenses. Calculate your expenses per month and keep a percentage aside from your earnings for investments.


Investment goals are what you want to achieve with your investments within a stipulated period of time. These are the factors that determine what you invest in.


Insurance should be a basic part of any financial plan. The basic purpose of insurance is to cover risks in your life, and not just offer returns. Opt for the right insurance but advisably get a Life Insurance. Life insurance is a protection for loved ones against financial hardship arising from the death of a breadwinner. This is even more important today than ever before with high cost of funeral expenses, college education and medical bills.


Life is full of uncertainties, emergencies do happen, jobs are lost without notices, and even good investment opportunities emerge sometimes suddenly. There’s always a need to buy things and eagerness to save for bigger goals like a house and a car. Be it the sudden loss of job, medical issues or sudden financial support required by a family member, you will need to be ready for future purposes.

Savings otherwise known as Cash Reserves do not only provide for emergencies, they also help to ensure that investments are not liquidated prematurely or at inopportune times to cover unexpected expenses.


The best way to avoid debts is to repay overdue bills or not let the bills become overdue in the first place or better yet, avoid getting into debt at all. Even though credit cards, mortgage loans, and car payments are a virtual necessity in the lives of most consumers today, minimizing debt and avoiding overdue bills are in everyone’s best interests. Here are some tips on how to avoid debts:

  • Pay with cash whenever possible.

  • Stay within your spending limits; buy what you can afford at the moment.

  • Avoid buying things on impulse.

  • Compare prices before purchasing goods.

  • Avoid taking up loans to make purchases.

  • If you cannot avoid borrowing, use the lender that offers the lowest interest rate.

  • Avoid bank overdraft charges by keeping close tabs on bank balances.

  • Keep a record of all credit purchases.

It’s important that your money does not lie idle. The earlier you start saving/investing, even if it is a small amount, the more time your money will have to grow.

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