## How do I invest when my salary is low?

Plan to invest with low salary |

We often hear the phrase, "How do I invest when my salary is low?" So what is the benefit of

**investing**in a small amount? If your salary is limited or you are a university student, then this article is for you.And if you are looking for a long-term investment plan, we will explain to you a plan for the future 30 years step by step.

I hope to read the topic and the following tips calmly because it needs a good focus.

1- In the beginning, we find that the

**problem**of poor salary or income is one of the most common reasons that stop individuals from investing, and they say that investing for people with limited income is much more difficult than any other category.The goal of our article is to clarify that investing is possible even for people with limited income. The idea that a person waits until his income increases is a common mistake that is a matter of mentality and not money.

2- This article is intended for the person who actually intends to read with the aim of learning in addition to developing his money. As for the person who does not intend to invest and does not have the ability to be patient, this topic is not suitable for him.

3- We assume that there is a person whose salary is 4000 per month, and this person often whose salary is barely enough to cover his expenses and aspires to increase his income. Increasing income is a better option than reducing expenses, but it is more difficult.

Therefore, we will focus on the easiest option, which is to reduce expenses, and we will focus on investing an amount of 200 or 5% of the salary per month and see whether the

**investment**is rewarding or not!!.4- Let's see if a person decides to invest 200 per month for 5 years, he will find 15,000 in his balance after 5 years and therefore you will collect in the year 2400, in addition to the profit from this amount.

This number, although small in the eyes of many, represents a salary of almost months and it is impossible to have this amount without investment + this without calculating any other amounts that come to you.

5- After 5 years, a person’s income often becomes higher due to the increase in his experience, and this thing means an increase in his ability to invest. Suppose after 5 years, the individual’s salary has become 6000, and by taking the same percentage of 5% = 300 per month, this is of course without calculating any annual increases or rewards, which often happen You will invest the initial 15,000 + 300 per month which increases your investment.

6- You will find in your balance after another 5 years more than 46 thousand, this number is equivalent to your new salary (6,000) for approximately 8 months and your first salary (4,000) approximately for a year without investment. It is impossible to have this amount at once + it did not affect the level your life very much.

7- Now, after 10 years, you have 46,000 by taking monthly amounts representing 5% of your salary. Your salary will increase significantly after the 10 years, which means a higher ability to allocate an investment amount. Suppose your salary has become 12,000, and by taking the same percentage, 5% = 600 per month. You will invest an Initial 46,000 + 600 per month.

8- You will find in your balance +118 thousand after another 5 years, the amount is equivalent to the new salary (12,000) for about 10 months and equivalent to your initial salary (4,000) for two and a half years. After 15 years of investment, you have an impossible amount to reach without investment.

9- After 15 years of work, your previous salary of 12,000 candidates is also rising. Now let's assume that it has become 15,000 and by allocating the same percentage 5% investment. This means investing 750 per month by borrowing the initial amount of 118,400 + 750 per month for another 5 years.

10- You will find in your balance +245 thousand after another 5 years 163,400, the amount is equivalent to the new salary (15,000) for 16 months or a year and a third of the number is equivalent to your initial salary (4,000) for 61 months or more than 5 years After 20 years of investment, you have an amount It is impossible to reach it without investment.

11- After 20 years of work experience, your previous salary of 15,000 rises easily because of your experience now. Let us assume that it becomes 20,000, and by allocating the same percentage of 5% investment, this means investing 1,000 per month, by borrowing the investment of the initial amount 245,700 + 1,000 per month, but this time for another 10 years.

12- You will find in your balance +828 thousand after another 10 years, the amount is equivalent to the new salary (20,000) for 41 months or two and a half years, the number is equivalent to your initial salary (4,000) for 207 months or more than 17 years after 30 years of investment, you have an impossible amount up him without investment.

13- During 30 years of investment, and only by allocating 5% of your salary, you will have 828 thousand, and then we find many benefits during this period:

- The money came to you without much effort.
- Even with inflation, you still have an amount equivalent to your last salary for two years (assuming inflation was 100% like the last 30 years), meaning that the 828 gives you only half.
- Without investment, it is impossible to have this amount.

14- The idea of the topic is to clarify that a person with a limited salary is impossible to find money in his account without effort. The investment gives you this matter but in exchange for patience.

The price is very difficult, but it is possible, and that is why the number of wealthy people in the world is limited and not large. The

**stock market**is a great blessing, and it is the secret weapon of the rich in the world, but you have to learn well before investing in it, or you can buy in investment funds far from the collapse of stocks.## What is the benefit of investing at an early age?

We find that among the benefits of investing early are the following points:

- Building an investment mindset.
- Work on a long-term goal.
- Serenity.
- self-control.

## What is the ideal way to invest during the 30 years?

We find that a good investment method that is far from risk is by following the following points:

- Buying an ETF follows the S&P500 market, and its average annual performance is 10%.
- Commit at all times to the monthly amount.
- Commitment to 5% of your salary or the appropriate percentage for you.

In the end, the sentence "I will invest when my income increases" is one of the biggest fallacies because individuals' expenses increase with their subconsciously increasing their income, and the issue is more mental than money.

The investment is suitable for the person who desires it, especially the person who is able to allocate a certain percentage on a continuous basis, and this does not apply to all people.

## Comments

## Post a Comment