Saving or Investing: Which is it for you?

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In the investment versus savings debate, many people are at crossroads. There are many factors that go into deciding which option is best for your future financial needs.

Saving money may give you a sense of security, and prepare you for any financial emergency that might come your way, but investing money in a diversified portfolio or business venture can give you an even greater sense of security. However, with the volatility of the market, investing can be risky.

The question of whether to save money or invest it is a difficult one.

Earlier this year, I was torn between choosing to save my money or investing every single dime. For days I thought about it but I was more than confused.

I had just quit my previous job(January 2021) and all I had were some small savings from my December earnings. If you ask me where all the salary I earned in the previous months went, my first two answers would be 'Lagos drivers' and my wardrobe. Crazy innit? I'll explain.

By Lagos drivers, I mean transportation fares. I tried taking uber to work a few times because I wanted to live up to the 'Executive Assistant to the MD’ role(but it was short-lived). Now, it was not just in any company but for a hospitality firm in Lekki(Lagos, Nigeria).

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It's one thing to work in Lagos and another to work in Lekki. People make it such a big deal, it was just packaging. I always had to look the part and dress the part without a wardrobe allowance from the organization. It was hard.

Back to the initial point. I was torn between investing all the money I had into an online business pending when I would find something else to do. The confusion began when I realized that my next rent was due in April of this year.

A part of me desperately wanted to invest and double my earnings if at all possible, but another little voice in my brain kept telling me how difficult it was to double money before the stipulated period.

As someone who has always liked to play safe, I chose the safer option, to keep the money locked away somewhere.

I paid my rent a few days ago and I couldn't shake off the thought that I could have done better. At the same time, I was thankful that I didn't invest the money. I mean, what if I had lost it? What if the business failed? But then again, what if the business prospered?

I bet you're as confused as I am right now.

I used to be an advocate of investment. I told all and sundry who cared to listen to always invest more than they save until a close friend lost the better part of his savings to an investment scheme I wholeheartedly advised him to invest in. It was painful at the time, even our friendship was affected. But all I really wanted to do was help.

Like I always like to reiterate, it's different strokes for different people. I know that life is all about risks but the big question is;

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Are you prepared to accept whatever results you get without thinking twice?

If you're not big on risks, save your money, and if you're the risk-taker, by all means, invest in whatever your heart desires.

Making money has always made my heart dance with joy, but this time I chose a safer option. Yes, I renewed my rent in full but I still have regrets. I shouldn't have them, right?

Please tell me, ‘savings or investment” which is it for you?

**PS: There’s no harm in having both. Remember, the more the merrier.

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