How to invest when income is very less ?

POSTED BY Ramchandra Nathgosavi ON March 3, 2014 3:17 pm COMMENTS (5)

Hi All, I am the reader of Jago Investor blogs since last 1 year & impressed with answer I got of my questions which I posted in number of occasions when I need expert help. Today, I want to discuss about more general things. Lets say, If one is getting 8000-15000 salary per month, how he should invest?

Which investment tool one should invest in when he is getting less salary? In these conditions also, is it advisable to invest in equity (mutual funds or shares) or investment in debt only should be preferred. Also, I observed that most of the time advisors asking for setting the goals for each investment. From my personal experiance I can say that it is really difficult to set the exact goals then it would be very difficlut to do the same who are getting very less income & still wants to invest their money somewheere? What should be the strategy during setting the goal or investing their valuable money. Your expert views on it please.

Regards, Ram

5 replies on this article “How to invest when income is very less ?”

  1. ashalanshu says:

    Dear Ram, exactly. The footwear is your protection before going out to save your feet. Similarly, while you are planning to invest, the first step is to create an emergency fund for yourself to help in testing time. then comes the life insurance and health insurance. Once these 3 things are in place, you can sure ask for investing. 🙂

    I rest my case here.



  2. Ramchandra Nathgosavi says:


    I will wear whatever I have & suitable for me. Intention is to get the protection & then to look good. (I know you wants to prove something 🙂 )


  3. ashalanshu says:

    Dear Ram, let me put you a question. While going out from your house, do you wear chappals or sandals or any footwear or you go barefoot? What benefit you get from wearing a footwear? You may think that what the silly thing I’m discussing with you but still try to put an answer for my question.



  4. Viren Phansalkar says:

    Hello Ram,

    Before anybody starts investing, he has to have insurance and emergency funds (however, small income may be)
    Read more about emergency funds here:

  5. akgc2 says:

    You can start with short term goals which are easy do define and also realistic. By realistic I mean that you know exactly how much amount you would need for your short term goal (1-3 Years) compared to long term where inflation is a big unknown factor.

    You short term goals could be
    1 . Buying a Mobile Phone
    2. Buying a TV
    3. Buying any item
    4. Paying your Kids Admission Fee (One Time Donation)
    and so many others

    Now you need to think of how much money you need for those goals.

    After this you need to calculate how much monthly investment is needed for same.

    Debt Funds,Bank FD/RD and PPF are the secured guaranteed returns (8-10% per annum) instruments and using the compounding interest formula (Excel or plane Maths) you can how much a monthly/Yearly investment of amount ‘X’ will grow in next ‘Y’ Years.

    Now if someone is young and has some risk appetite for some better returns he/she can try Mutual Funds/Equities etc. MF are little easy to start with but still keep a horizon of at least 5 Years or more.

    Historically economy dooms to boom cycle has been between 5-10 years.

    Longer the investment period lesser the Risk. But you must know when to exit the market.

    e.g. Year 2008 Sensex was at peek and then it doomed and remained low till early 2010.

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