Welcome to another week of financial learning. Last week, we started by examining the need to save and invest. The first reason we discuss was the need to save for a future need.
Today, we will discuss three other reasons why you and I should be saving if not doing already. The second reason why we need to save is to plan and guard us against the unexpected future or event.
We as religious people will always pray for the good things to come our way! That is good and true. Nevertheless, do we always receive good news?
The answer obviously is NO! And in most cases, the No comes with financial burdens. That unexpected sickness, accident, job loss, death in the family etc will definitely come crashing on our doorstep!
No matter how unfortunate it may be, you will need money to sort that medical bills, keeping money for the days not working, funeral bills etc. We therefore need to plan for these events by putting a fraction of our income into investments.
How pathetic and sad it will be that one will have to be calling friends on the sick bed for financial support. That should never happen to you!
And it starts today! Don’t eat all your eggs today expecting a chick tomorrow.
You cannot eat your cake and have it. Put some aside for these sorrowful days.
Another compelling reason why you should be thinking of saving and investing if you have not started is to make your salary an income generating tool. How wonderful it is that you are able to receive double or even triple income monthly because you decided to save and invest in another income generating venture. This is possible when your investments are growing and paying you interest on monthly and scheduled basis.
You may not need to engage in any rigorous work in your late 40s due to the repaying investments. Repaying investments here maybe a running fixed deposit, a small transport business that are managing with your income or even real estate rentals.
Let your investments work for you!
As a follow up to your investment generating income for you, it can also act as start up capital for any future business you may want to engage in. We all want to grow and start working on our own in future.
The capital to start that future business will not be provided by only the bank or friends. You will need to have your personal fund as part of it. This personal fund can be from the little savings you are doing today.
It therefore become a springboard or even initial capital for that business. Friends and financial institutions would then top up the financing gap if any.
Do not work today and be a “beggar” tomorrow. Plan your financial life well for a better tomorrow.
We will tackle reasons why most people do not save or invest during your working life next week God willing.
I wish everyone a wonderful and memorable weekend!!
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Patrick Baah is a chartered banker with over 5 years experience in main stream banking having worked in various capacities. He is currently at the Branch Manager Position of his institution.
He has been a qualified member of the Chartered Institute of Bankers, Ghana with a good membership standing since the year 2013.
He also holds EMBA and BA from Kwame Nkrumah University of Science, Technology, and the University of Ghana respectively.
Patrick is the originator of the daily epistle dubbed “Savings Tip of the Day” which has been running for over a year on WhatsApp and Facebook.
Patrick has also been teaching on the Topics Savings, Investment and Financial Independence for over 2 years and a research fellow for ILAPI Ghana.
Patrick is into youth facilitation and counselling.