NewStats: 3,261,884 , 8,175,452 topics. Date: Friday, 30 May 2025 at 09:44 PM 5j103o

While your savings is chilling in an (possibly earning little interest), a wrong investment could make you contemplate an early suicide mission.

On the other hand, a right investment could make you win in riches......

Subject to the bank holding your savings, not folding up..... Folding your money in savings with it....

addikt:
Didn't read your long story but this is sure simple...

INVESTMENT IS BETTER ONLY WHEN YOU'RE SURE IF THE GAINS . IF NOT , THEN JUST SAFE AND MEET YOUR TARGET .

No investment is sure me man. it's all risk!

Manus17:
which books can I read concerning the financial discipline?

The richest man in Babylon......"if your output is greater than your input your upkeep becomes your downfall"
This financial statement changed my financial life as an orphan.

Read also RICH DAD POOR DAD, WHO MOVED MY CHEESE, THE ENEMY CALLED AVERAGE etc. These books will inspire you and will almost make you kill yourself if you had mismanaged money before.

Don't forget that money has wings and can fly away from you if you don't know how to manage it.

It's easier to save than to invest but it's more profitable to invest than to save. Also it's more risky to invest than to save.

Finally, don't invest what you can't afford to lose.

Hybrid of both

I will say 70% investment 30%savings


Savings is required in a country like Nigeria where insurance cannot be really trusted to provide impromptu financial assistance when needed

The naira is a terrible currency that hardly appreciate in value and when it does, it will never reverse the losses. Thus, relying on savings most especially in a currency like naira maybe a terrible option

In addition, the sky rocket rate of inflation that comes with the volatile currency because of the dependence on importation of goods will probably wipe out a huge chunk of the savings eventually.


However, investment also depends on a number of factors such risk appetite

One might choose to invest in stocks(shares and securities) or physical long-term investment like property and businesses

In Nigeria, the best investment option seems to be property investment. The rate of demand for new houses continue to rise as against the supply of new one. Thus, creating a supply shortfall. I.e there are less and less houses as the population grow

This is a sure bet to guarantee safety against a volatile naira as well. As the prices of land and housing property continue to rise with the currency

Nonetheless, government securities such as bonds and treasury bills can also be a good option of investment for those not capable of investing in the property market, but the return is not as much as property investment.

Investment in shares and private bonds can also be a good option, depending on the type of shares and bonds one can lay his/her hands on.

Investment is better because investment generate more money unlike when you save, during inflation, the value of the money you are saving reduces.

Sending urself to skul, is it a saving or investment?

bettercreature:
Go and marry a rich man

Is it a taboo for a woman to make her own money?

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 . 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 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 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 far from your reach

A lot of people ed 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 with more than 500k Naira, then you shouldn’t think of investing in any major portfolio.

You can’t have an 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 .



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 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/

Wow!

Awesome!


BiafranBushBoy(Triple-B).

What you have written is Gold.

I learnt this the hard way as a beginner when I squandered my Savings on some investments that saw my entire savings go down the drain.

This is what I now preach and you articulated it in a better way.

Lovely!

I need to share this.

I stopped reading the hogwash where I saw "savings equals to no risk" - until you lose your savings to a bank directly or indirectly or inflation caught up with it then, you'll begin to accept the fact that understanding is superior to knowingness. Kindly preach this hogwash to conformist, that's the kind of information they like to absorb. Unfortunately, conformists aren't known for adventure but covetousness.

Savings is good but it's in no way better than investment - there's no risk-free activity anywhere. The first rule of investment is understanding (not just knowing) the market segment.

Those who understand practices, they don't just teach/preach - teaching is for those who knows but have little or no understanding of what they teach.

I hold nothing against you though. Peace out.

NONE IS BETTER THAN THE OTHER, THE TIME AT WHICH YOU DECIDE TO SAVE OR INVEST IS WHAT THAT MATTERS.

_A bank is a broker between the poor and the rich. The only place where the two meet is in a bank. The poor brings the money, through saving, and the rich takes it, through borrowing. A poor person saves the money because they have more money than their thinking capacity. So they keep the money in the bank so they can go and think what to do with the money they saved._

*On the other side, the rich people come to pick that money, through borrowing, because they have more ideas than the money they have. On a practical side, please show me one billionaire who got rich through saving and I will show you a million Nigerian who have money saved in the banks and are still renting the houses that the Millionaires and billionaires build through the poor people savings which the rich borrowed from a bank.*

```This one �got me thinking.```

Nice one OP

Great

Wonderful

dominique:


Is it a taboo for a woman to make her own money?

Its not a crime but its unneccessary.You can find a wealthy man if you simply invest the money in your body

BiafranBushBoy:


The richest man in Babylon

Think and grow rich.

Psychology of wealth.

The problem isn't reading the book, the problem is not implementing what the book says. Goodluck.

lalasticlala, survey this thread first na

My favorite

Dear OP,

George Samuel Clason is the author of the book THE RICHEST MAN IN BABYLON and not Napoleon Hill. Please modify your post.

seunlly:

My favorite

Everybody's favourite.

Nymeria247:
Dear OP,

George Samuel Clason is the author of the book THE RICHEST MAN IN BABYLON and not Napoleon Hill. Please modify your post.

Thanks bro. I mistook for "Think and Grow Rich"

JimaeChinko:




Wow!

Awesome!


BiafranBushBoy(Triple-B).

What you have written is Gold.

I learnt this the hard way as a beginner when I squandered my Savings on some investments that saw my entire savings go down the drain.

This is what I now preach and you articulated it in a better way.

Lovely!

I need to share this.

Thanks so much bro. Just go to the blog and share.

One Love!

LordKO:
I stopped reading the hogwash where I saw "savings equals to no risk" - until you lose your savings to a bank directly or indirectly or inflation caught up with it then, you'll begin to accept the fact that understanding is superior to knowingness. Kindly preach this hogwash to conformist, that's the kind of information they like to absorb. Unfortunately, conformists aren't known for adventure but covetousness.

Savings is good but it's in no way better than investment - there's no risk-free activity anywhere. The first rule of investment is understanding (not just knowing) the market segment.

Those who understand practices, they don't just teach/preach - teaching is for those who knows but have little or no understanding of what they teach.

I hold nothing against you though. Peace out.

Lovely. Let's make an example.

Is 1 Million Naira in 2000 the same as one Million Naira in 2018? I will help you - the answer is NO.

Inflation killed it.

How many people have One Million Naira in their today (9th March 2018)? I will help you, the answer is just below 30% of Nigerians (Including working class people).

Do you know that someone who started saving 20k from 2000 until this period will have been a millionaire? (Your answer is who cares?)

That millions would have helped them set up a big business despite inflation.

Imagine if your dad started saving since year 2000 till now and handed you 5Million Naira, would you complain of inflation affecting the money?

Many people prefer investments, but end up squandering all their money without actually investing.

Good day Sir.

iamdannyfc:
Sending urself to skul, is it a saving or investment?

Investment! But a long term investment (which actually might not end up being successful)

iamdannyfc:
Sending urself to skul, is it a saving or investment?

Depends..

If sending yourself to School leaves you with more debt than is supposed to then it is a bad investment.

A lot of people don't realise this so they waste their time and resources on Courses that they are never ionate about and come out to the already stretched job seeking population.

Think and Grow Rich advised we go for "SPECIALIZED KNOWLEDGE/EDUCATION" instead of a General One.

I realised this after wasting 5+years(Jamb,Tertiary&NYSC) only to come out and realise that I really never needed them.

I would have just gotten my ACCA professionals, etc, I.T(NIIT,etc) right from Secondary School. Some of them lead even to B.Sc and immediately would have started my own vision/company and become an employer of labour instead of wasting all that time and resource and still come back to starting up your vision late.

Investment is the better option. i will always advise that we should as much as possible give our little money we save to Wealth Managers such as: FBN Mutual Fund, ARM Wealth Managers, AIICO Mutual Funds and a host of others, they understand the business of wealth creation and sustainability and they have been accredited and licensed by the CBN to carry out such business. if u ask me i prefer making my investment with these companies than to save up with one 'ýeye' pension fund

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 . 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 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 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 far from your reach

A lot of people ed 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 with more than 500k Naira, then you shouldn’t think of investing in any major portfolio.

You can’t have an 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 .



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 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/

I am keeping the sum of ten million naira to invest in the shares of MTN Nigeria plc. That is an investment i believe.

You asked what's supposed to be an open question.

And then you started defending probably your own belief/standpoint.

Very funny.

One precedes the other, we are meant to save then invest what has been saved. Why? Savings have potential of depreciation, while investment has potential for multiplication. $1 million 20 years ago is stronger than $1 million today thanks to inflation but $1 million invested in 20 years ago with a 10% interest rate, you can do the maths.

sekundosekundo:


The richest man in Babylon......"if your output is greater than your input your upkeep becomes your downfall"
This financial statement changed my financial life as an orphan.

Read also RICH DAD POOR DAD, WHO MOVED MY CHEESE, THE ENEMY CALLED AVERAGE etc. These books will inspire you and will almost make you kill yourself if you had mismanaged money before.

Don't forget that money has wings and can fly away from you if you don't know how to manage it.

Noted.
thank you very much..

JimaeChinko:


Depends..

If sending yourself to School leaves you with more debt than is supposed to then it is a bad investment.

A lot of people don't realise this so they waste their time and resources on Courses that they are never ionate about and come out to the already stretched job seeking population.

Think and Grow Rich advised we go for "SPECIALIZED KNOWLEDGE/EDUCATION" instead of a General One.

I realised this after wasting 5+years(Jamb,Tertiary&NYSC) only to come out and realise that I really never needed them.

I would have just gotten my ACCA professionals, etc, I.T(NIIT,etc) right from Secondary School. Some of them lead even to B.Sc and immediately would have started my own vision/company and become an employer of labour instead of wasting all that time and resource and still come back to starting up your vision late.

hmmnnn.... Wow

BiafranBushBoy:


Investment! But a long term investment (which actually might not end up being successful)

kush, hmmmnnn

If you asked me this same question last year, I would hurriedly say investment. I had no savings in the bank, so much that my officers started calling me to ask why I stopped using their banks. I was busy diversifying my investments as much as possible. But now I strongly believe in a balance of both and I've raised my savings portfolio to about 30% this year. This happened after I lost N1.5m in December in one of the investments I decided to try, then it dawned on me that money in the bank (even though doesn't generate anything) isn't such a bad idea.
I have learned to set a threshold of invested capital for myself which I have attained. Henceforth I'll be growing only my savings, because hunger to use more money to make more will possibly make you lose almost everything and leave one bankrupt if care is not taken.