It is important to open a savings account. And it’s incredibly easy to open one in a bank.As long as there are no long lines and bad network issues.
If anyone wants to start saving today, all they have to do is either walk to the closest bank or download one of the numerous cash apps online. Or perhaps even get a piggy toy and start to commit little tokens every other day.
There are numerous reasons why people build up their savings. Depending on your goals and financial situation, you may decide to save for rent, school fees, food and any other essential expenses. In fact, these are the primary reasons why many of us have been urged to save. We crave a sense of financial security and abide by the traditional belief that a habit of savings can give us financial freedom.
The truth, however, is that having our savings locked up somewhere only gives us a sense of financial freedom, not financial freedom itself.
In that case, is that all there is to savings? Well, short answer. Yes. But, is there so much more you can do with your savings? Short answer. Yes.
Except your money is put into good use while being locked away, it’s very unlikely to be of much use to you other than maybe paying for that rent or buying that PS5. But what happens when you tick those goals off your list?
You have to start saving afresh for a new goal once you have fulfilled the previous one.
So, instead of saving up for food or for rainy days alone, is it possible to make our locked-up cash keep working and growing even when we go about your lives?
Turns out the answer is yes. It’s called investing – and we’re sure you’ve heard about it before.
What we are sure you haven’t heard of, however, is that you don’t have to have a big amount of money in order to start investing.
Savings are great for very short-term goals, but you still have so much life left to live.
And in this blog post, we’re going to show you 3 ways to make your savings multiply and start making it work for you.
WHAT IS THE DIFFERENCE BETWEEN SAVING AND INVESTING?
Savings is simply putting money aside, bit by bit, in order to pay for something specific in the future, like a fee, a rent, or domestic outgoings. To do this, you would usually have to put your money into cash products, such as a building society or savings account.
Investing, on the other hand, is simply using some of your money to buy things you predict will increase in value in the future. It is a practice of trying to multiply parts of the money you already have. With investment, you commit your limited resources to projects with the biggest potential for returns.
A quick look will reveal that there is a place for both options, but having an investment plan undoubtedly stands out as the more profitable venture in securing future expenses.
However, we have matured into a system that encourages, and even demands, more savings than investment. But, not to worry, here are three ways to use your existing savings to create an investment plan that will spike your journey to true financial freedom.
1.Set Financial Goals/Targets
The first step to making your savings work for you is to plan ahead. Set actionable goals and targets you will like to meet. You can decide on short or long term investments, depending on what plans or goals you’ve set.
- Fixed Deposits
Money considered to be savings is usually placed in an interest-earning account because the potential risk of losing your original deposit is very low. As a result of the low-risk involved, it is wise to have your savings in a fixed deposit account where you earn a fair interest and can be assured of the safety of your money.
- Invest In Digital Facilities That Put Your Money To Work
Your best bet is putting your savings in a FinTech. FinTechs give you the opportunity to invest in businesses that you hitherto would not have known or be able to reach. In addition, you are offered great Returns on Investment. This implies that, after you may have saved for a bit, take your savings and invest it via a FinTech. In 6-12months your investments may have matured and you get more money than you put in.
Make an extra decision today that guarantees financial freedom tomorrow.
You can download our app for free . With as little as N500, you can start an investment plan and reap the rewards when others have exhausted their savings.