Move beyond Saving

Move beyond Saving

Developing the muscle to pay yourself and save is a good step in your financial journey but it’s not the only step you should take if you want to hit those financial goals. Saving is great but you also need to do more especially because of inflation. Keeping your money in a savings account that earns you no interest causes your money to lose value. Having your savings in an account that earns you more interest (higher than the inflation rate in your country) is the best way to go about saving as it compensates you for inflation. Here are ways you can move beyond savings:

  1. Start with a Money Market Fund

Find a Money market fund(MMF) that works for you where you’ll be able to accumulate money for more investments or a sinking fund or even an emergency fund. Ensure that you’re consistent with depositing money in the MMF so that you can hit your goals. We have a blog on regulated MMFs to help guide you through.

  1. Plan for your “ wants” 

It might seem like you only need to budget for necessities like bills and savings but you might need to spoil yourself every once in a while, treat yourself to a vacation or send money home. Whatever it is, it’s important to slot that into your budget and even better accumulate the money for that gradually. You can do this by creating a sinking fund.

  1. Set up a retirement plan

We’re going to keep shouting from the mountain tops about planning for your retirement as soon as possible so that you can have a peaceful and possibly fun time while you retire and can’t work anymore to sustain yourself. We have a blog on pension funds you could check out here.

  1. Diversify your investment portfolio

After you take the first step in investing and accumulate money in your MMF, you can begin to think about diversifying your portfolio depending on your financial goals. Remember, don’t put all your eggs in one basket.

We hope you’re able to take the steps outlined to grow in your financial journey. We have plenty of resources shared in our weekly newsletter and a guide with more information about kick starting your financial journey, Stop Freestyling your finances. 

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