DON’T JUST SAVE, INVEST

These very words have become the compass of every financial decision I make.

But before I made this resolve, there was a past.

“Emulate your brother. Stop spending unnecessarily and save up so you will have something for tomorrow”. These were my dad’s words to my elder brother, and of course; I was the “brother” aforementioned.

You see, I was really happy that I had more money than my brothers at the end of every term but shockingly, we had roughly the same amount of money on the first day of the next term.

Did this drop happen because I spent my money lavishly? After all, it was my sweat.

Nope.

I only bought what I felt was needed and kept the remaining money for later, but even in all my frugality, it still got exhausted.

Why?

Find out as you continue reading.

Because it didn’t grow.

If you’re familiar with words of wisdom, you should have come across this one; “you are never stagnant in life, you are either depreciating or appreciating”.

These words might not have come from a wise economist or investor but it means as much as it does in money matters as in other spheres of life as well.

Needs are a continuous occurrence and money depreciates if it is left as it is.

This (above) has explained the reason for my “square one” levels at the start of a new session. I only saved, I didn’t invest and when my stagnant funds met inflation and personal needs, they shrunk into oblivion.

Note, nowhere in this article were you discouraged to save.

But after saving, what next?

Do you leave your funds in the bank or wherever you dumped them while saving to use only in dire conditions?

Or do you make your money bring its returns?

According to the book “The richest man in Babylon”, gold or money as the case may be are slaves that must work for you, their master to bring in other slaves that would repeat the cycle.

What am I trying to say?

Every money that you get should bring more money to you and it can not do that if it remains in one place.

Even if you live a miserly lifestyle and swore an oath of abstinence to the money you saved, inflation will affect its value in the long run. Especially when you are living in a country like ours.

So, what do we do to make our money work for us?

RESEARCH ON PROFITABLE INVESTMENTS.

Wait, were you expecting me to say “ give your money to Mr. A or B”?

Well, you are not wrong but you are taking things too quickly.

Researching will make you know the “Mr. A or B” you should give your money to or it is better off stolen.

Make adequate research on a venture that would give a reasonable return on investment (ROI) so that you don’t have to die off before you eat the fruits of your labor.

Ask competent people who are already in the field you want to venture into about the prospects of the investment.

Do not ask a goldsmith for questions relating to precious stones because he produces expensive jewelry as well. Ask him about gold only and you will get the answer you desire.

After you have made your research and gathered as much information as you can concerning your newfound investment, you…

INVEST SOME NOT ALL OF YOUR SAVINGS INTO THE VENTURE.

Why not all? You may ask.

You don’t invest all your money in a venture, no matter how promising it looks because that is common sense.

You need something to fall back on while you wait for your returns and also, something to restart with supposing your research and knowledge on the investment was not enough to make it a successful one.

There is no holy grail in any investment.

The odds may be too high for anyone to expect a failure but we live in a world of uncertainties.

If you are sure that you put your money in the right place, be sure to get your returns. Nevertheless, leave room for a rare occurrence of failure every time because no one knows tomorrow.

You found an investment, you put your money in it, you received your commission as expected, so…

What is next?

WIDEN YOUR SCOPE.

As your earnings and age advance, so do your needs. Therefore, to meet up with every need that arises, more money must be made.

To make more money, you need to widen your scope.

Remember, while quoting “the richest man in Babylon” earlier on, I stated that money is a servant that makes servants make more servants.

So likewise, the money you made must make more money for you.

Widen your scope, broaden your base with more research and more involvement in other profitable ventures and see yourself with enough to even give to others.

Again,

Research on an investment.

Invest according to your findings.

And…

Widen your scope.

These are all you need to make your savings worthwhile.

That’s all for now

Remember money is a servant. Make it work for you.