These days, savings are worth little or nothing. The interest earned on a savings account is really low and doesn’t measure up to inflation. Yet, banks aren’t ready to increase the interest they offer on savings accounts. How then do you grow your money? In this article, you’d learn the right steps to take in growing your money and creating wealth for yourself.
Check your financial health
Before deciding to grow your money, it is crucial to first check your financial status and determine if you’re financially ready to start growing your money. For example, if you have a pending loan, the first step would be to pay off your debts before you begin investing.
First, concentrate on building your financial health and putting your financial status in order. Draw up a budget that suits your needs and keeps your finances in check.
Have a combination of Investments and savings
Investing provides an opportunity to increase the earnings on your capital and grow your money. However, investing comes with a higher risk than savings. Many times, you are unsure about the possibility of an investment instrument to remain stable; this stops many people from investing. Being unaware of the economic crisis that may arise in the nearest future can stand as a deterrent to investing. However, investments offer an opportunity for your funds to grow exponentially with time.
It is advisable to have a combination of investments and savings. Your savings will provide a financial buffer for emergencies and short-term goals while your investments will steadily grow your capital. Take advantage of Bucket at SolomonHills to save towards a short-term goal. You can earn returns of up to 15% per annum on your funds on Hills. With investments, it is best to start early to maximize your chances of earning better returns in the long term. Grow your money with Hills at SolomonHills, earning returns of up to 20% per annum on your investment.
Take advantage of the power of compound interest
The power of compound interest can never be overemphasized. The earlier you start investing, the faster you’d reach your financial goals. You may decide to wait till you’re 40 before you start investing, however, you’d miss out on the profit you’d have earned by starting early.
For example, if you start investing ₦50,000 every month at age 30, at an interest of 15% per annum, in thirty (30) years, you’d have a total of ₦360,232,527.99 at age 60.
However, if you wait till age 40 before you start investing, using the same strategy of investing ₦50,000 every month, you’d have a total of ₦77,296,308.66 at age 60.
The sooner you start investing, the sooner your funds will reach a point where they earn higher returns and grow your money exponentially. Compounding gets more powerful every year, growing your funds to greater heights with time. With SolomonHills, you earn daily compounding interest on your funds, giving your capital more purchasing power every day.
Set-up automatic investments
To keep yourself from frivolous spending, it is advisable to set up automatic transfers to your investment accounts. That way, you’d keep your spending in check and overcome the urge to buy things on impulse. Setting up automatic deductions from your account to your investment account will help keep you consistent with your investment journey.
At Solomon Hills, we offer the option of setting up automatic investments from your bank account. You can determine how often you want these deductions made to keep you diligent with your savings. This way, it’d be easier to adjust your spending to fit your financial goals.
