A Japanese proverb says if you save money, money will save you.
This is one of my regular quotes when I talk to people about financial literacy, but as an expert, I know and also teach that the journey to financial freedom isn’t just about saving.
Saving is the act of putting money aside; which is the number one step in making your money work for you.
A few years ago, I dumped some money into my children’s “savings” bank accounts and left it for about two years, because I wanted to prove a point that traditional savings platforms that people would usually use take them nowhere.
The result was dismal.
Traditional savings accounts are not designed to help you.
The savings hardly grew, and to make matters worse, there were charges on a monthly basis on that account.
Saving money is only a stepping stone to investing.
Whilst saving is outing money aside, investing is putting money to work.
The best thing is to not only put money aside but put the money to work; which is the act of Investing.
Fintech platforms, technological advancement, and many other factors have revolutionized the world of financial literacy, and there are a lot of tools to leverage.
These days, you can buy US stocks from anywhere in the world.
And buy fractionally as well.
For example, one stock of Amazon goes for $3,389.79. With technology, you can purchase $10, $20, $50 dollar worth at any point in time, and continue to accumulate your stakeholding until you purchase full units.
The information is available everywhere, if you commit to knowing more.
This article is one of those awareness-creating opportunities.
Social media platforms are good sources for getting content on financial literacy.
There are many courses that can help you optimize your resources.
How do you save?
There are a couple of budgeting formulas around, but I like the 50-30-20 rule (modified)
50% of your earnings should go into your necessities/ need-to-have (living costs, groceries, etc)
30% into savings and investments
20% into your nice-to-have items (Splurging, entertainment, etc)
Build consistency by putting your savings aside, on a monthly basis.
But don’t just save, learn to invest.
There are a few asset classes to consider, and I’d talk about them in another article, soon.
It’s time to take things a notch higher.
One of the best things to do is to also collaborate your way into wealth, by leveraging the potency of Investment Clubs.
I will talk about this some more, soon.
2022 is the best year to start all over again.