Where Does The Bulk Of Your Income Go? Savings Or Investments?

In the context of this post, savings mean the money a worker keeps aside for himself/herself from his/her salary or income.

Often times, most people, especially low-income earners, struggle to maintain a decent life by saving the bulk of their monthly income. It is not a bad idea to save as savings serve a good purpose of providing resources to solve uncertainties since we live in a world where we are not sure of what tomorrow brings. This goes a long way to show that it is good to save from our income no matter how little it is. On the other hand, we should not forget what is more crucial than saving; that is INVESTMENT!!!

Saving the bulk of your income and neglecting to invest can create financial problems for you in future. Most people who save without investing, sooner than later, discover that they have not been creating wealth in any way but only keeping aside resources to solve problems. If you save without investing, you may never grow financially because you are likely to end up solving problems which of course, are never ending.

Let me share a personal experience here to explain the essence of this post. After my youth service in 2008, I got a job in an organisation where my monthly pay was about 40k. With the aggressiveness in me to save, I was sustaining myself with 10k every month and was saving 30k. I disciplined myself so much. I stayed away from women, alcohol and every other thing that could make me spend unnecessarily. Since I was not paying rent or buying food (I was staying with my elder brother), I was able to save over 1million Naira within 3 years. Now, this was the mistake. I did not invest any part of the money. I rented an apartment, bought some properties and the rest went into paying bills, solving issues and paying for my Masters program. In no time, I had exhausted everything and was finding it difficult to cope; it became a struggle to live decently. That is the problem. If I had invested the money wisely in something worthwhile, it could have created a source of stable income where I would be rest assured that after some time, I could rent an apartment, furnish it and go for my Masters program with my investment still fetching steady income. This could even provide an avenue to diversify investments.

Young graduates still in the early years of their careers or those who recently started work should learn to invest more, especially those who have found themselves in private schools as teachers where the pay is not too big. Save but invest more. In fact, let the main purpose of your saving be for investments and not for solving problems and buying properties. Problems are unending; it is proper investments that will guarantee that you meet these problems comfortably well. Most young graduates do not invest even little. They save little with the hope of getting a better job and in most cases, they end up getting stuck in a job or career for many years where they earn little with no reasonable or real promotion.

As an employer of labour, if a graduate seeks employment from me and I discover that he/she has worked for 15 years, I may not employ you! I will take you to be an extremely visionless fellow! Reason: You should have created an investment in your profession, passion, career or in mine, in which you are seeking employment (if it is different from what you have been doing).

Do not get stuck in a life you do not enjoy living. Invest more today while saving the lesser part of your income to take care of little unforseen stuffs. Do not save completely to solve problems. Once again, they are unending. What separates a struggling man and a comfortable man is that the struggling man struggles to solve problems but the comfortable man solves bigger problems without having empty pockets and red bank accounts.

NOTE: No part of this article should be published or posted elsewhere without the permission of the author. If you must post it elsewhere, the author of this article must be acknowledged.

This article is the original work of:
Kelvin Ukachukwu
Copyright © 2017

Choppings.. . Person go first chop before E save or investment. Who don die no fit save or invest especially in dis current hardship

MrKnowitall, dominique

Nbote:
Choppings.. . Person go first chop before E save or investment. Who don die no fit save or invest especially in dis current hardship

You are funny Different strokes for different folks, I tell.

Rapmoney:
You are funny Different strokes for different folks, I tell.

Investment! Investment!! Investment!!!
With no highlighted investment to go into. Can you give a list of possible investment along with their risk level?

elpiro:

Investment! Investment!! Investment!!!
With no highlighted investment to go into. Can you give a list of possible investment along with their risk level?

My thoughts exactly.. investment ideas @ Rapmoney

Guys, its not the work of RAPMONEY to make you Rich just like your current Boss. He is only helping.

To Rapmoney. Dude never Bleep up. Thank you for sharing. I know what to do(don't ask me). Although, I am surprise and wonder how he spend 10K in a Month.

However, there is a way.
God bless the article writer.
God bless Rap money
God bless me.