I want to save and invest, how do I go about it?

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Friday letters are usually dedicated to taking questions from our community. Do you have a question for us? Please feel free to send an e-mail to info@themoneyafrica.com or a DM to any of our social media channels.

Question

I am a salary earner of less than ?200,000. I provide for myself and my siblings. I also want to save and invest. How do I go about it ?

Answer?

The first thing you need to do is to find a way to earn more. You can learn a skill to start a side hustle or you can also take professional examinations that would help you gain more knowledge and increase your salary.?

You can also pay for your siblings to learn skills that they can monetise to help reduce some burden and to increase the income in the house.?

Your salary, however, should not stop you from saving and investing. You can always start small. All you need to do is create a budget that can help you allocate your funds well.

A budget that will include savings and investments and also be able to provide for your major needs. You need to learn to prioritise.

Your budget should also be followed through strictly.

Question

What does an airdrop in crypto mean?

Answer

An airdrop is free coins or tokens issued by the parties behind a cryptocurrency. It can be used as a form of marketing to promote awareness of the coin or token.?

It can also be issued in exchange for holding a coin or being an active member of its community.?

However, you should beware of scams. When in doubt, or if an airdrop isn't by the coin issuer, please avoid.?

Question

What is the money market?

Answer

Money market refers to trading in short-term investments. It refers to a component of the economy which provides short-term funds. It deals in short-term loans for a period of a year or less.

There are several money market instruments such as treasury bills, commercial paper, banker's acceptances, deposits, certificates of deposit, etc. Each of the instruments bear differing maturities, currencies, credit risks and structures.

You can invest in the money market by purchasing a money market mutual fund, buying a treasury bill, or opening a money market account at a bank.

Join our community today and get more information and knowledge about your finances. This also gives you access to a monthly webinar series on different topics pertaining to personal finance.?

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If your salary seems to get exhausted in a few days, you should track your expenses as you earn more. Here is a budget sheet you can use.?