3 crucial things you must not do with your savings

Even though you have power over your savings, there are certain things you shouldn’t do with it, if you don’t want your sacrifice to be in vain.

Wondering what these things are? Take a look!

1. Do not spend it

It’s quite saddening to have saved so much only to blow it all up in one venture. Unless you were saving for the sole purpose of buying a commodity, do not spend your savings. Be purposeful about what you eventually do with it. However, it’s fine to reward yourself with whatever you want after your savings has served its purpose.

2. Do not invest in a business you do not understand

It’s absolutely fine to save towards starting a business. However, you need to ensure that you don’t invest in a business you have little or no knowledge of. Plus, in a desperate bid to double your savings, be careful not to fall prey of Ponzi schemes. Therefore, before you invest in any business, endeavour to have at least a working knowledge of whatever business it is.

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3. Neither loan nor give out your savings

Most times, when a close family or friend realises you have a certain amount of money stashed somewhere, you become their ‘go-to person’ when problems or a need for cash arises. You can be generous, but do not cut into your savings. Instead, have money set aside for charity. Once you’ve exceeded that amount, that’s it. Do not lend your savings out, even if they promise to pay back (promises relating to money are hardly fulfilled).

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Before you move your savings, carefully lay out your plans and choose the right investment. In due time, the money will appreciate and you’d be able to give funds to as many people as you want or purchase that fancy car of your dreams.

How will this article influence your approach to saving? Share with us in the comment section.

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