BiafranBushBoy:
Savings vs. Investments: Which should you, go for?

The longtime debate stands between Savings and Investment, which is better! Before you come into the post and scream “Investments”, I sincerely want you to read and digest the post.


Savings, as written in this post doesn’t mean the regular bank savings account. Please refer to the previous post for more details.



You must have come across this quote that compares savings and investment before “Investments make you rich, while savings make you poor”. This is absolutely false and would never be true. Financial illiteracy is the reason why many people keep losing money in the financial market and blame the devil for such action.

This post would help you decide whether you are ripe to create investments, or you should build up your portfolio with a good discipline savings culture.

Difference between Savings and Investment

Is there any difference between these Savings and investment? The answer is yes, and I will explain below.

“Saving is an Investment, but an investment isn’t saving.”

The above statement has been proven correct by financial experts, and I will show you an example below.

According to TheBalance, “Savings helps you make money while investing MIGHT help you build wealth”

Putting the above statement in another way, when you invest, you are more likely to lose your money and become poor than when you save.



The basic difference between Savings and Investment is just the Profit margin and risk factor.

Savings = Zero Risk investments + Low-profit margin.

Investing = High Risk + High-Profit margin.

This simply means that Savings can be called investments, but investments cannot be called savings.

A friend of mine had 600k Naira in his account and invested about 400k in setting up a poultry farm. After 4 months, all the bird suffered from a particular disease and died. He was left with just 200k to plan his life again.

A woman has 1 million Naira in her account and invested about 900k in a particular share she was advised to buy. The Share lost its value and she came back home empty-handed.

“What a way to spend her hard earned money”

There are also success stories of people who invested and got out successfully, but in investing, it is nothing but pure luck and a little bit of financial literacy.

A particular popular firm in Lagos known for it rich financial background has been declared bankrupted and taken over by the appropriate body. Shareholders and stakeholders have gotten their fingers burnt, which means Goodbye.

Things to do before you decide to Invest as a Starter

1. Have robust savings account far from your reach

A lot of people contacted me after my last post on how they could invest. After I talked to them about the need to save money before investing, I became a prophet of doom to them. They forget that the fastest way to lose money or gain money is to invest. This is a big difference between Savings and Investment

As a low salary earner, a working class person with a family with no major savings, young people building their lives, saving for a while will give you the leverage to invest.

"Investment portfolios will never stop to cease, but saving requires discipline and focus."



It is impossible to find an investment with so much upside potential without excessive risks to it. Imagine looking for an investment portfolio with an interest margin of 40%, yet you aren’t willing to lose money. It doesn’t work that way.

If you don’t have reserve savings account with more than 500k Naira, then you shouldn’t think of investing in any major portfolio.

You can’t have an account balance of 100k (Home and abroad), and you are thinking to start a business with all of it. Have you calculated your risk factor? Maybe you should just employ me.

Consider your Debts, Cash Flow, and Liabilities.

A married man with 2 kids already has lots of liabilities to consider. The wife, home, kids, school fees, car, and etc are enough debts to consider already.





There are several savings investments to invest in, and I will be willing to share in my next post. You can just subscribe and I will inform you when it is out. The basic truth is that you should consider Savings and Investment.

The key to saving like I discussed in my last post is avoiding the banks (Where you won’t touch your money)

Save for a while before you invest

According to Warren Buffet (the chief saver), he said “Investments might make you rich, but savings will never make you poor).

One advice I give my clients is that before they decide to invest, they must show me their savings balance.

While you decide to save, you should consider a long-term plan that would enable you to accumulate your money and have a wonderful reserve account.



Avoid High interest and High-Risk Portfolios as a Learner

The brokers won’t tell you this (sorry I am bursting their bubble). Stockbrokers and other financial brokers survive through the money you invest.

As a learner, avoid investment portfolios that promise unrealistic ROIs. They will sucker you in and unload dogshit on you.

I have lost thousands of Naira on several high-risk investments, and I have made millions from high-risk investments too. So I know exactly what it feels like.

If you have worked as a working class person with an average salary of 45k for above 3 years without a savings balance of 800k Naira. What you need is financial discipline and not investments for now.

Accumulate money with savings, and build wealth with investments. That is the relationship between savings and investment.

Recommended Book to read: “Richest Man in Babylon” by Napoleon Hill

Just remember that when it comes to taking tough financial decisions, you might grow cold feet. Spending money is actually sweet!

Just visit the blog by using the link, and subscribe for more exciting posts. Thanks to all those who bought me beer the last time, I hope to get more. Smiles… bye!

http://topwritersden.com/savings-and-investment-difference-and-guide/

BiafranBushBoy Good sensible write up , it makes a lot of sense , I used to believe in emptying my savings accounts to investment opportunities , great mistake , I lost a lot of deals or projects because I didn't have enough savings for emergency back up cash -especially when the deal or project needs cash due shortfalls , learnt my lesson now , am building up savings and an investing when I have surplus cash ..for example I bought a property recently , however , the broker forgot to add some regulatory government fees , at the end of the deal I was asked to pay extra 10 % or I will lose the property , imagined I had no savings , I would have lost the property and all the initial deposit , lesson learnt ..

Toks2008:
It is so disheartening that in many parts of the world, many married men have lost their wives and what they have is a maid, child-minder,cook,Nursing mother, children teacher, financial partner and so on all in one person

How can one woman be all the aforementioned and still be in her right state of mind to be that sweet romantic lady you married? how can a man get angry when a woman complains of tiredness after tending to the child, cook, clean the house, wash cloths, run errands and in most cases also go out to work in order to augment what the man brings home.

A wife is not synonymous to a slave. Men should get their wives all the necessary home appliances like washing machine, hoover, dish washer, food processing machine and so on to make life easier for their wives and also try to help them out in any way possible so that the wife they married will still be available to tend to their needs cos a worn out woman can never think straight or satisfy her husband's emotional and sexual needs.

Don't lose your wife.

Toks2008 are you bored , looks like you are living in the 1930s , what are terrible narration of women , ..women have been liberated ..and you are still whining

EMEKUSBOY9:
i just hope he can enact free visa law for Nigerians

No way , we have enough Nigerians in Italy already :-)

serious photo shop

May be he likes yellow women , its just a preference ,

Ayodejioak:


Thank you! You speak wisdom.

African movies are the best of its kind IN AFRICA because they are made by africans for africans

African are now tired of its movies because the rest of the world make Movies for international consumption.

Thank you , you are absolutely right ...once we get our infrastructure right and the basics of life- which our leaders and people fail to understand , we will blossom more than the Americans - they have more problems than us but they are lucky they have leaders that love their country

Are you sure its not yours

Ayodejioak:



Thank you for that sentence " Africans does not need a movie to tell them who they are "

Its funny how people don't get the politics here... Just like any other firm, Marvel wants to rake in as much MONEY as they can.

Its all about the money here more than love for the culture or love for mama Africa...

That explains why they are being more global than local. I.e their content needs to cut across the people of the world as much as possible

and they have succeeded , Nollywood now needs to make such movies too to cut through Europe and America , I have not seen that happen yet , most of the people that watch African movies in Europe are Africans , we need to create contents that will attract the Europeans and Americas ,it doable , you need á sizeable budget and a good producer

Ayodejioak:


See, This is the issue...

When Movies potraying Africa as a shrine with thatched roofs on mud houses and everyone be walking in leaves are made, we begin to rant and go haywire about it.

Now they decided to get us some 5 decades ahead of the present U.S technology and all the good stuff, and this is all you have to say?

If you've seen the movie, you ll get to see how much reference was made to trends of Africa and even Nigeria in particular.

Now, I personally feel it is baseless to judge that movie simply because ogogo, babasuwe and the rest of you favourite artiste are missing in it!

I see your point ,I have seen the movie here in the UK , its valid but I believe the movie was made to appease the blacks in America because they have been complaining that all powerful comic heroes are always portrayed as white , it was not made to promote developments in African , its a gimmick ,basically , the movie just create more multi-,millionaires for the Marvel team or board of directors , to be honest , Africans does not need a movie to tell them who they are ..

Ayodejioak:


Ill have given you further proof to buttress my points only if you were sure of yourself.

Let me know when you finally decide your NOT really is for real!

lol , the Blank Planther , did not really feel African to me , maybe because they did not use some of the African artiste , I don't know , it look like they were making fun of the African continent and its leaders , we are always cutting each other short even when we have all the resources , it was a wake up call sha , that is what Africa should be like , the graphic and animation was good but it was not made for the real Africa , the movies will appeal to the black Americans and to someone that have not visited Africa before ( most of the stars in that movie ) , the whole story was a cliché ,African always fighting themselves ...

Ayodejioak:

I love Nigerians.

They will never admit they are broke access

Instead, they 'll find something to blame.

Black panther is the most interesting and successful movie in the history of super hero comics. Quote me anywhere.

Not really , since better movie Iron Man 3 or Black lightning on Netflix

America is just like Nigeria , the only different is that they have infrastructures in place if Nigeria sort out their electricity problem and other infrastructures issues , Nigeria will be far better

Nigerians an ineffectiveness , its starts from the citizens to the leaders ..what a mess

Chubhie:

This is disheartening considering the fact that Nigeria has all the potentials to compete with the world's best.

Yes , that's the most painful , Nigeria was suppose to be Black settlement land of opportunity for all of us in diaspora but our hope has been dashed , No security and No infrastructure

Chubhie:
How much is human life worth in Nigeria?

1Naira , Nigeria the disgrace of the black race

yet a National disgrace , I did I managed to became a Nigerian

Naija no get shame , now you are sending the jets out , this country is one of the most disgraceful ever allowed to exist ..

Proudgorgeousga:


the whole plot does not represent reality na, it is fiction. it is a movie adaptation of a comic. it's just like you complaining spiderman/batman is not reality.

I agree with your opinion on the fact that it wasn't meant for Africans in Africa Sha.

and he is not talking rubbish nollywood is trash

I agree with you , yep some of the Nollywood movies is completely trash , whoever wrote those lines most be high on ewedu or ogogoro

He is talking rubbish , most of the Black Panther actors , have not even been to Africa before , the movie was not made for AFRICANS to be honest , it lacked REALITY

salveoP:
. Are u there already?

yep

salveoP:
. UK is expensive...

nope depends where you are living or the work you are doing

salveoP:
Meself...i tire 4 dis country...pls i wan relocate to Ghana. Any ideas on how to go abt it?

UK is better

Give the money to reputable Man of God or church ..and see your life turn arround

I must say Buhari is a gentle man , he might not be an effective Presido

linearity:
I think if he inflating the numbers....

1400 girls in two years, equals 2 new girls each day, if you add repeat visitors; that will be like 4/5 girls each day.

And for these new unique encounters to have his phone and agree to take pictures, etc it means these not quickies at the popular brothel down town, time must have been spent with them.

And if you doing all these raw; you must get an STD, not taking of AIDS....but at least some form of STD....I can almost bet my life that, no where in the world that if you take a random sample of 1000 ladies, at least 1 does not have at least 1 STD or communicable disease.

its fake news , I bet a Nigerian wrote the story to look like a white man because it will go viral , there are too much junk on the internet nowadays , these stories are not verifiable

Fake news , what's the point of sharing his story anyway , its another story to bring African low ,
the same can happen in Europe too even with less money whatever color you are ..rubbish

Fukafuka:
....A hausa friend sent me this just now ! Is like they have been rescued

good news ,I hope its true , they told us Boko haram has been defeated , so I did they manage to carry out this operation

Castroii:
wtf is daddy yo, is that the name of a street in daura??

Castroii - you are a perverted Nigeria , hence your country is a disgrace

Nigeria is a disgrace to the black race

33.2% Buddhism
18.8% Christianity
18.5% No religion
14.0% Islam
10.0% Taoism and
folk religion
5.0% Hinduism
0.6% Others

Goke7:
Singapore is home to one of the fastest growing churches in the world led by Joseph Prince, Daddy freeze should try get sense abeg

33.2% Buddhism
18.8% Christianity
18.5% No religion
14.0% Islam
10.0% Taoism and
folk religion
5.0% Hinduism
0.6% Others

she is pretty , somebody else will take her , I hope her attitude is good though