Ordinarily, savings means regularly putting aside a portion of the money you are given or earn in a safe place that pays interest.
We live in a society enmeshed in consumerism. Everyone crave for societal recognition by indulging in mindless acquisition. The importance of savings had been so relegated, especially among the youths. I keep wondering how far this generation can go in wealth creation with this poor attitude towards savings and investment.
It is high time the young ones stopped believing that savings and investment are meant for parents alone. It is time to key into the financial system by adopting savings culture and other financial management techniques that would help secure our future. Imbibing sound financial principles at an early age would go a long way to help students and young ones manage their resources effectively, appreciate how money works and how it can be channeled to productive ventures now and in the future.
Saving money from early age guarantees financial independence, prudent management, planning and overall success of individuals and society.
The money saved should be placed in a financial institution for safekeeping and to earn interest on your money. But remember that the interest on your savings should be above inflation rate. This reduces the risk of spending, theft and gives your money the chance to grow. Savings is a precursor to investment.
Conceptually, investment is the acquisition of assets (real or financial) for income generation and capital appreciation. I also consider intellectual property an asset. The economic growth of any society is hinged on the depth of investment of the people. On the other hand, the depth of investment is determined by the people's propensity to save. Any society with poor savings culture is doomed to remain in economic stagnation. Sadly, this is the situation in Nigeria. Our propensity to consume is on a stratospheric increase while our propensity to save is cascading rapidly.
There is need for the young ones to change this tide. It's time we realize that economic growth is not determined by how much we make but how much we save. We can only invest when we have robust savings. It is impossible for a society without savings culture to grow.
Fortunately, there are institutions with great commitment to drive and deepen prudent and effective management of resources among the populace, especially youths. Prominent among them is Investment One Financial Services.
Investment One is a financial power house in Nigeria, a former investment arm of Guarany Trust Bank. They're registered with Securities and Exchange Commission as Fund managers and stock brokers. They have a number of financial products tailored for different category of investors. This investment bank is involved in securities brokerage, fixed income and mutual funds investment. These funds are invested in stocks and other money market instruments like government treasury bills, company commercial papers, FGN bonds, state development bonds etc.
The following funds are professionally tailored to meet the needs of young Nigerians who are keen on preserving and stealthily growing their capital;
Abacus Money Market Fund is an open-ended Investment Scheme with competitive returns. A diversified portfolio with investments in quality money market instruments, short term debt securities, such as banker’s acceptances, Commercial papaers, and treasury bills.
The Investment One Vantage Balanced Fund (VBFUND) is a balanced mutual fund that was created to maximize long term capital growth and maintain regular income.These funds are invested in Equities, Fixed Income, Money Market and Real Estate.
In 2017 alone Abacus money market fund and Vantage Balance Funds both managed by Investment One Funds Management returned 17 and 25 percent per annum respectively to their investors as interest income. Interest are paid on quarterly basis. There's also provision to reinvest earned interest. No commercial bank can beat that. Most commercial banks pay between 3 and 4 percent per annum on savings account.
I enjoin everyone to key into this avenue provided by Investment One financial services to invest in our financial market and reap the benefits therefrom. Being a participant in our financial system provides an amazing opportunity to fully understand how the principle of compound interest works. It enables us to earn a decent income while learning financial management from a practical perspective.
I want our youths, who are the hope and future drivers of Nigeria, to understand and appreciate the importance of prudent management of resources and other initiatives that have the capacity to positively impact lives and by extension, the society. This is to ensure their financial security and independence in future.
