Many people think investing money requires having a high income. But in fact you can use your money to make money regardless of how much you earn each month. If you allocate your funds properly, you can find a new income channel besides your salary so that you earn extra money and grow your total income.

If you are still working at your first job or graduated not long ago, you might not be taking home a high salary. But there are viable investment plans for anyone who makes as little as 15,000 baht a month. The key is how you allocate your investment in order to gain a passive income.

First, right after you get each salary payment, you  should divide it into three parts, each based on spending objective. Here is an example, which you can tailor to fit your own circumstances:

1. Total living expenses 60%  = 9,000 baht

2. Emergency reserves  10%  = 1,500 บาท

3. Investment 30%  = 4,500 บาท

But what should you do with the investment portion? Here are some suggestions and guidelines:

1.Sell a product

• Sell at a market : New outdoor markets have been springing up like mushrooms all over Thailand. Night markets in particular have become popular hangouts. If you like to sell, then use your skills and creativity to invest some money in products like clothes, food, smoothies or snacks and sell them in a market. Focus on providing high quality and building your brand to attract shoppers. If you don’t have enough funds to do it right, save a bit more before investing. Selling at a market is an easy way to develop a new income channel.

• Sell online: Online sales are another way to vend products, thanks to today’s nearly universal internet access. Find an interesting product and create an online store on a website or social media channel like Facebook, Instagram or Line. Come up with the right promotions. It’s worthwhile to devote some budget to search engine marketing (SEM). The key SEM approach is search engine optimization (SEO), which can lift your website to a higher search rank on Google, attracting more shoppers. Don’t overlook ads on Facebook. And it’s that easy to access new channels to make more money. If your product is well received by the market, you can scale it up and turn it into your own full-time business.

2. Invest in financial assets

If you are not willing to invest the effort it takes to sell, simply save your money in fixed deposit account and develop your own savings discipline. If you want a higher return, buy mutual funds, which can be chosen based on their performance track record or investment approach. Buy several different types of mutual funds to diversify your risk. Or invest in stocks.

Here's an example of how you might invest 4,500 baht in financial assets each month:

1.  Fixed deposit       500 บาท

2.  Mutual fund  A    1,000 บาท

Mutual fund B     1,000 บาท

Mutual fund C     1,000 บาท

3.  Stock                     1,000 บาท

If you invest 4,500 baht for five years, and earn an average return of 4% a year, you’ll get a return of more than 34,000 baht.  Here is how to calculate it:

Return = total investment value (at end of five years)  – principal

(total sum invested, i.e., 4,500 x 5 years x  12 months = 270,000 baht)

= 304,180 – 270,000

= 34,180

Your average annual return will thus be 6,836 baht.

A look at these numbers shows that you really can accomplish something when you are earning just 15,000 a month. If you know how to properly allocate your savings and are disciplined in your investment approach, you can grow your income. We believe that you really can become an investor if you study it seriously, no matter what kind of investment you choose. But don’t forget that one crucial factor in investment success is duration.

The sooner you start to save, the faster you will see results.