Most people make more money than they spend on their day to day runnings and this is what has necessitated savings. Unfortunately many do not realise that you can be loosing money even when saving it as money saved is incessantly being attacked by inflation.

Inflation is the general increase in prices of goods and services in a particular place over a particular period of time. the effect of this could vary depending on the inflation rate of the country you live in. In NIgeria, inflation rate is currently around 10%. What this translates into is that if you are able to purchase a plot of land for one million naira on 18 november 2010, by 18 november 2011, the same plot of land would have increased in price by 10% making it sell for one million,one hundred thousand naira, if you had kept one million naira in bank and wish to buy the land after a year, your money would not be enough to buy the land it would have bought a year ago, this is what i mean by deprciation in it's purchasing power.

This is why financial experts advice that you only keep only a portion of your money meant for upkeeping and emergencies in the bank and invest the rest in instruments that can beat the rate of inflation in your country. While there alot of commercial activities that can conviniently beat the rate of inflation, if is unfortunate that most people do not have the time, energy, and expertise to put into it. Nigerians in the past have harnessed fixed deposits from commercial banks to preserve part if not every of the purchasing power of their funds from inflation, but the returns on fixed deposits has fallen and not lucrative enough for people to particpate in it. This has left most people wondering how to effortlessly preserve their purchasing power.

Allow me to introduce you to the world of asset management companies and porfolio managers in Nigeria, these are registered companies with securities and exchange commission who are allowed to manage funds for individuals and corporate bodies. These companies offer returns on investment that comfortably beat the current rate of inflation in the country. Please feel free to ask questions on this thread or contact me @ ikudayenu@yahoo.com if you have questions.Thank you.