When I was younger, my parents always told me save your money, don’t spend anyhow. Choose what necessary you need to buy, And truly for the likes saving is good because it help you prepare for emergency or future need. But as I grow older and learn more about finance, I realize that saving alone cannot take you far, because money sitting in bank is actually losing value every day.
Let me explain. If you save ₦100,000 today in the bank, after one year the money is still ₦100,000. But prices of things around you has gone up. Maybe rice was ₦30,000 before, now but you yes it is ₦40,000. So in reality, your money has reduce in power, even though the figure is same. That is called inflation.
This is why investing is very important. When you invest, your money is working for you, not just sleeping. For example, if you put that ₦100,000 in a small business, or you buy shares, or even hold crypto assets carefully, there you is chance the money will grow more than bank interest. Of course, investment has risk, but with knowledge and patience, it bring better reward than just saving.
I once upon a date kept money for two years in normal savings account. At the end, the interest I receive cannot even buy one of rice. That was the day I tell myself I must start learning about investment. I begin small with little amount in crypto and also in a local cooperative. The difference was clear.
So the lesson is this you saving is good for short term, but for long term, we need to invest. Not Even if it is small amount, consistency will make it grow. Don’t just let money sleep, let it work.
Money in pocket finish, money in investment grow.
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