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Wednesday, 29 October 2014

To save or to invest?

The global economy is slowly starting to recover and the Nigerian economy is amongst them. With more people now in work and people earning again the question has arisen – should one save or invest for the future?

Studies have shown that the Nigerian economy although recovering, still has an unstable Naira value. The current high inflation rate is not contributing to the recovery or the stability of the nation’s economy.

So the question remains, should one invest their money or save it?
Financial experts will tell you to build a good portfolio of investments rather than leaving money in a savings account. It is wise to remember that investment, with its high returns, has the potential of enhancing ones earning capacity than savings does. Industry experts support the notion of it being good for one to save, but it is also good for the person to learn to invest a good portion of the savings in a long-term plan, capable of yielding returns.

Savings vs Investing – the risks
The fact is that saving money in a savings account is a low risk approach although the yield may be lower. With investments the overall yield can be a lot more but the risk involved is greater. At the end of the day it comes down to personal preference and circumstance. In an ideal scenario one would be able to put some money into savings whilst also making good intelligent investments.
Investment options available in Nigeria
•    Buy land or property
•    Buy shares and stocks
•    Bonds and debenture

Whether you are saving, investing or doing both, always remember to periodically check your choices to ensure that they are suitable for your current investment goals.

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