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To receive a salary every end of the month can be both a good and bad thing. There is great comfort in getting the monthly paycheque but on the downside, can lead to complacency such that should the salary not come through, one is left at a loss if investments hadn’t been made.  

And like Marylin Monroe once said, nothing lasts forever. Bad times come, companies face tempests and retrenchments are effected.  

The unpredictability of such happenings should be a motivation for employees to invest their earnings actively.

Investment in alternative ventures gives much more security and especially because an investment is expected to give a profit on top of maintaining the capital pumped in.

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Some of the businesses areas that one could look into in 2020 are:

1. Agribusiness

Asked which ventures he would invest in if he were to be 21 again, Aliko Dangote, Africa’s richest man, said, “Agribusiness and ICT.” It is not hard to see why. Demand for food is not something that is expected to go away any time soon and if someone is able to engage in organic farming, then the investor has cut himself a market gap.

People are constantly seeking to avoid a lot of carcinogenic products that dominate the food markets. They are also looking for high quality, fresh agricultural produce. Identifying the product that the market needs and making an investment in that direction would mean agribusiness success.

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In the Big 4 Agenda pillar of Food Security, possibly the Government will pump a lot of money to create a very enabling environment that will boost agriculture. Time to be part of the project is now.

2. Manufacturing 

It might not be the biggest business in the last few years in Kenya, but hope has never been bigger. One of the Big 4 Agenda pillars is manufacturing. Following initiatives such as the 2017 Buy Kenya Build Kenya, Kenyans might just be gearing to buy more from local manufacturers.

Manufacturing in Kenya is expected to reach a 15 per cent contribution to the GDP by 2022. There is, therefore, every reason for the Government and the industry to put in place initiatives that will see the sector thrive. Put some money in there. Make hay while the sun shines.

3. Treasury Bills

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When there is a lot of money in circulation, the Government will be willing to take some back in to prevent inflation. Treasury bills are a secure, short-term investment, offering you returns after a relatively short commitment of funds.

Some of these bills are issued for a period of three months. Generally, the Treasury bills, which are a very safe investment, take less than a year. The returns are low but are assured.

“Profit is declared at the point of buying,” says Maina Gatoto, a trainer at International Sales Training Institute

4. Treasury Bonds

These are the same as bills only that they are medium-to long-term investment. Most of them are fixed rate. Like bills, this is an assured investment. Treasury bonds attract more interest than bills.

5. Tourism

Kenya is a tourist destination. The country remains an attractive getaway from polar weather for tourists. As such, people who put their money in the tourism industry most often end up reaping big.

Travel tourism and conference tourism offer a most potent market in Kenya. It is meant to only get bigger with time as the country becomes more attractive even for business.

6. PR and Branding

When new businesses come up, need for PR and branding also comes up. Even for existing businesses, the competition in the industry need constant offsetting.

Constant rebranding and active PR is therefore inevitable if any businesses has to stay afloat. Investing in PR and Branding is assured to give returns.

 WHAT STAGE OF LIFE ARE YOU IN?

Source: Patrick Wameyo, a finance advisor and business advisory consultant

In the first critical phase of employment (22-28 years of age) income is usually very low given the low value of contribution by the employee. This phase is the beginning of wealth accumulation in life.

In the next half of the wealth accumulation phase (29-43), income begins to grow. The ability to allocate more of this income (to investment) is dependent on many social choices, for example, the timing of entry into a marriage and arrival of children.

For the young unmarried earner

Investment done by a young, unmarried earner varies from what a family person should plan to invest. The priorities differ and the amounts would too.

A young earner, for example, would take some of his earnings and consistently deposit into a sacco for accumulation and subsequent application towards purchase of an asset.

This investor could also use small denominations for high-risk investments such as shares, pumping in little monthly contributions. They could also purchase a small mortgage for a little money, which helps keep all the capital growth.

Older earner with more responsibilities

At this stage, one would need to invest in education insurance for their children. They could also pump more money into share investments and ownership of business portions.

Unit trust funds, are a safe investment option. One should also have some cash savings in market for liquidity.  

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Dr Pesa Investment Salary Money
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