As much as some people are doing okay financially, the truth is that the remaining majority are going through a lot. With inflation on the rise, coupled with an almost stagnant income, it could be quite difficult to navigate these tough times, let alone investing.
'Investing is for the big guys.' Well, not necessarily. You can start from where you are.
There are some practical ways you can invest even when in a tight economy. They are not just theory; they are actionable and easy to understand. You can also start implementing most of them on the fly. They are also realistic for someone with limited income.
Let's go through them:
1. Start small and stay consistent
Save consistently, no matter how small it may seem. See consistency as your first win.
When you start small, it is very easy to be consistent. You could set a monthly goal of an amount you can easily remove from your account without thinking too much. Start with that and increase it gently. There are also some apps that help you with a recurring payment feature. You could use this to systematize the process so that, even if you forget, it would help you.
To reduce temptation, you could set the money-removal time to be when you'll be sleeping, so you'll just wake up to the debit.
2. Transfer skills into income
Yes, skills matter. They will help you in the mid-to-long term.
What is that skill that you have already? Monetize it.
If you don't have a skill, start with one.
Use your free 20-30 minutes a day to improve your skill today.
Preferably, you can learn skills adjacent to the ones you currently have for an amplification effect.
It could be teaching or tutoring what you know already, basic troubleshooting and technical support.
Investing in skills is like killing two birds with one stone. You are gaining knowledge that gives you a fighting chance in the labor market. If the 'worst' happens and your employer lets you go, you have something extra to offer to people on a freelance contract basis till you get another good job (if you want).
3. Avoid high-risk and confusing investments
Make sure to invest in low-risk assets at this time. Investing in stable assets will keep you alive at least until the economy becomes better or until your financial situation can counteract the weight on your lifestyle.
Prioritize preserving your capital over getting a 10x on it.
Also, make sure that your investment in assets that offer more stability than volatility (how fast it can go low or high in price). It might be better for you to invest more in assets that offer 18% annually than something can give you 80% in a few days.
As much as possible, do not invest in what you don't understand.
4. Build with what you already have
In a tight economy, you can use what you have at the moment as capital.
What you have could be knowledge, it could be equipment you can rent out, sales skills. Harness what you have presently to create income sources for you. Some others could be your phone, internet, time, etc. Identify dormant resources and put it to work.
5. Limit financial leaks
Identify the expenses that are gradually draining your finances. You don't necessarily need to buy that 1-litre yoghurt with grilled fish you buy every weekend. Of course, you can treat yourself after a period of work, but you could reduce it to something more pocket-friendly for your current financial level.
You could save that additional change and add it to your investment fund.
6. Establish a long-term direction
Investing in a tight economy requires patience, not panic. You need a clear direction. not rigid targets that pressure you or make you feel like you’re failing. Know where you’re going, even if it doesn't look like it at the moment. Direction keeps you grounded when progress feels small.
Your pace can change without changing your destination. Some seasons demand slow, careful steps, and that’s okay. What matters is staying consistent. Small actions, repeated over time, still compound. Progress that looks insignificant today often becomes the foundation for that big thing.
In conclusion, remember that you can start investing right from where you are. Tight economies do not kill investors; confusion does.
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