Some of us feel saving money isn’t that important. Exactly, why are we in a hurry of paying off debt than saving money for retirement or the future? Investing your hard-earned money can also be tricky. Every day we hear that people are being scammed by unscrupulous investors. You don’t want to be one of them, but you also want to save money for a better future and peaceful retired life.
Not everyone is aware of how to use their money or what to do with it. Saving or investing may sound simple, but it is difficult to known which one suits you the best. Saving money is a straightforward concept. You will receive a standard ROI on your money that you’ll be deposited every month. However, the drawback of savings is that you don’t set an amount to deposit. Whenever you have an emergency, you peep into your savings account and withdraw some of the money.
On the other hand, investment is related to growth and maximum returns. There is definitely risk involved in investment, but when invested with great care and calculation, the risk is worth taking. In savings you get a fixed rate of interest, in investments, there is potential growth as well as protection against the predictability of inflation.
Piggyvest is the first savings and investment app in West Africa. They provide various savings as well as investment plans to people without scamming. Some of their plans include safe lock, flex dollar, piggy bank saving, flex naira, Target saving, investing, etc. You can save smartly here, lock funds, watch your portfolio grow, and enjoy quarterly savings.
Benefits of Investing
Whether you invest in an asset or an investment plan, the returns will be much better than savings. If you buy a property, you get returns in the form of rental and capital. If you invest in stocks you will get returns through dividends and capital. Finally, if you invest in any bond you can get regular payouts or coupons during the scheduled period.
Good Retirement Plans
Investment is done either for the kid’s education or a peaceful retired life. The majority of people save for retirement so that they aren’t dependent on anyone. Retirement plans are long-term plans and these investments require a regular deposit of part of monthly income. Senior citizen plans and SSN benefits are there to help, but they don’t fulfill luxury life. The FIRE movement is much in demand among youngsters who want to retire early.
Better investments in large amounts help in saving tax deduction from the say. Some people say it is better to get tax deducted few months than to invest a large amount every year. Take it this way, tax deducted is going to the government, but investments will be used only by you in long run.
If you save money in a savings account, it declines the value of the interest rate due to the power of fluctuating inflation. Let’s be frank the banks don’t provide an appropriate interest rate compared to other investment plans. Moreover, with inflation fluctuation, the bank reduces the ROI which impacts your money in the bank. However, when you invest money in a plan, it beats the inflation plan.
The government has reduced funding for retirement and pensions. Thus, it is necessary to think about a better future by investing in special plans.