Am Addicted To Saving Money......is It Good Or Bad - Investment - Nairaland
Nairaland Forum / Nairaland / General / Investment / Am Addicted To Saving Money......is It Good Or Bad (1017 Views)
The Secrets To Saving Money / Checkout The 5 Surprising Tricks For Spending Less & Saving Money More / Ok (2) (3) (4)
| Am Addicted To Saving Money......is It Good Or Bad by zamirikpo(m): 9:26am On Jan 19, 2016 |
hi guyz i need informed advice on this issue, i run a business and its doing pretty well by the grace of God, the tin is when ever i make money i have this great urge to save it, i dont know if its from the fear of loosing it or just a natural habit. i am not stingy but only spend on very very important tins...i dont even have a salary.....i just spend company money when its extremely necessary. on the other hand i hear people say that cash left in the bank would continuously loose value and with the plight of the naira against the dollar...i am beginning to believe them. so my question is......what is the best line of action....for money u dont need at the moment. some say start another business(which is not an easy task)....some would say buy a land/property(i have two plots of land which i bought with my hard earned money but are now in dispute). so pls help me...guys.....WHAT DO I DO WITH CASH I HAVE IN THE BANK......ps...na small change ooh, before them scammers begin reason my matter. |
| Re: Am Addicted To Saving Money......is It Good Or Bad by somrecords(m): 9:32am On Jan 19, 2016 |
If u don't have time to manage a biz. Find someone else who does and lend out the money l. On interest rate better than the crap banks offer 1 Like |
| Re: Am Addicted To Saving Money......is It Good Or Bad by Nobody: 9:36am On Jan 19, 2016 |
zamirikpo: |
| Re: Am Addicted To Saving Money......is It Good Or Bad by Bevista: 10:04am On Jan 19, 2016 |
Savings by itself may not be very ideal if it is an end in itself. The objective, really, should be to invest the saved funds. The reason for this is simple - INFLATION. --- @ 10% Inflation rate, an item sold today for N1m will be ~N1.1m one year from today. So, if you just drop your money in a Savings account yielding 3 - 5%, your N1m will be N1.03 - N1.05m a year from today. That erodes your purchasing power in the future, as you will, technically, be N50k - N70k poorer. ---. The smart thing to do is to find an investment that has the potential to yield above Inflation rate. Depending on your Risk Appetite, you could consider Government Treasuries (Bills, Bonds, etc), Real Estate, etc. The Stock Market does not look good at the moment but might soon become ideal a couple of months from today. --- These are just suggestions and should not be construed as Investment Advice. You should consult with a knowledgeable and trusted financial advisor before making any investment decision. --- Having said that, in the absence of any Investments, it is better to SAVE than simply go on a spending spree. |
| Re: Am Addicted To Saving Money......is It Good Or Bad by zamirikpo(m): 10:37am On Jan 19, 2016 |
thanks guys...@bevista u r really on point.......i actually have plans to expand my current business which would really cost alot.....i am currently far from realizing that target but may do so in a couple of years all things being equal. then again a friend of mine told me a story of a man who lives on the interest he gets from fixed deposit....cos he has quite a huge sum in the bank...which he saved all his life. more entries guys, am trying to weigh the pros and cons of saving. remember saving in almost 100% assurance on ur money but investment which has the potential to increase that some considerably can also reduce the said sum to zero...... |
| Re: Am Addicted To Saving Money......is It Good Or Bad by Bevista: 11:07am On Jan 19, 2016 |
zamirikpo:It is apparent that you are a more risk averse person. I would advise you to talk to your banker about Government Treasuries. They are about the safest investment you can get and they offer better yield than Fixed Deposit. --- With the current CBN MPR at around 11%, you can hardly get a fixed deposit interest that will pay you more than 7% right now. In fact, I hear most banks offer 3-5% currently. However, on T-Bills, you can get up to 11%. --- T-Bills is like lending money to the Federal Government for 90 days. This credit is backed by the full FAITH of the government. The FG has capacity to generate revenue from Taxes on in the worst case, they can get the CBN to print money, so their chances of default is limited. Your bank can theoretically and practically go insolvent if the economy is bad and they make poor business decisions. In such a case you will be backed by NDIC up to a maximum of N50k, irrespective of your initial investment. --- If I were a really risk averse investor, and given the option between FD and T-bills, I would definitely go for T-bills both from a risk and reward perspective. |
| Re: Am Addicted To Saving Money......is It Good Or Bad by zamirikpo(m): 1:17pm On Jan 19, 2016 |
@bevista ive been hearing about treasury bills but dont really know wot it means and how it works.....i tink that would be the best option. my bank skye bank dropped interest rate from 11% which i used to enjoy to 8.5% i got 8.5 becos my close friend is a senior banker or sometin high in the bank. i would definately readup treasury bills...............cos the business world aint looking friendly at the moment with the dollar rising everyday, oil prices plunging and the stock market crashing even the banks may run out of business. infact thats the main reason why they are dropping interest rates cos they dont need peoples money, wot would they be doing with it. |
(1) (Reply)
Again MMM Reassures Nigerian Participants, Says Scheme To Restart January 14 / New Way To Make #20800 In No Time. It's No Ponzi / 5 Simple Steps To Buy And Hold Cryptocurrencies Like Bitcoin And Ethereum
(Go Up)
| Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 26 |