Investing 101!
20th of July 2019 |By MOMBO |Views:

Investing 101!

Investing; a word often heard in the financial world. What does it mean really? Well, investing is the act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.

Investing Defined:

Every day we work hard towards earning a living and splurging our own hard earned cash can be tempting; whether it’s by treating yourself to dinner, buying that new outfit or the simple great pleasures in life. However, investing helps you in making smarter choices by prioritizing your financial future over your present desires.
In simple terms; investing your money is setting it aside while you go on with your busy schedule and have that money work for you in the present and in the future as well.

What investment is not!

Often investment is misinterpreted for gambling; but the two are totally two completely different ways of getting value for your money. The former is all about certainty while the latter is all about risk. With investing if you do it right there will be no loss of money while in gambling; the uncertainty of getting profit for your money is high.

Where should you start?

Many Kenyans put off investing thinking they need a lot of money to start, which is not true as you can start investing with as little as 5000 Kenya shillings per month.
The earlier you get started, the sooner you can learn more about it, the more beneficial it will be for you in the future.
Do your research on which type of investment will be more advantageous for you, understand it in order to minimize any peril that might occur.
Begin with low cost investment types if you do not have a lot of money to start. It will get you to figure out more about investments.
Read More Here:
To invest, you need to manage your money. Start putting aside money you want invest monthly; whether it’s buying capital, shares, stocks or bonds.  You can start with a small amount of money then build your way up by disciplining/ committing yourself to what you are investing in.

Why are you investing?

In order to get more profit and value for your money, you need to know yourself and why you are investing in the first place. Your investment strategy may vary from another person’s investment approach. Every person has different reasons for investing, goals and different timelines as well.
Define your goals and objectives before you commit yourself to an investment. Questions to ask yourself may include-:
  • Do I want a steady cash flow?
  • How much in return do I want from this investment?
  • Which timelines am I looking at
  • Is it short term or long term?
Remember, you can have different investment for different goals. The point is that before you decide to invest any money it is important to understand why you are investing and the end result that you are seeking.


With technology everything is possible. You can now invest through your phone in the click of a button. There are different apps that can either choose an investment for you or you can choose the investment for yourself. The latter gives you more control.
With Mombo App for example, getting started is easy and investors can start earning money within 48 hours with high returns of as much as 24% per annum. Read about it here.
Final Note: Investment is not as difficult as people make it look; just start small, know your goals and see your profits increase in the future. Remember; “Price is what you pay. Value is what you get.” – Warren Buffett