Hello, I got some news you’re not going to believe. No one’s ever told you this but…
That money in your savings account will not take you anywhere if it stays as “just savings”.
Taking some everyday spare change and keeping it for a specific purpose is one thing but leaving it as just savings won’t do you much good, especially when all you plan to do is spend it lavishly (“iykyk”, check our previous blogs for more details).
Here’s the tea: Your efforts may reward you, but your money is meant to serve you the most🤧
Say it to yourself now that “My money must work for me this 2025 and beyond”.
The main gist of the day:
Ever heard of the “Cash Avengers?”
Bet you have not 😏, but it’s cool anyway because you are about to.
•Investing (the builder)
•Compounding (the silent grower) and
•Diversifying (the protector)
- Investing means putting your money into something that can grow or bring you profit over time. Kinda sounds like compounding (you’ll find out what that is really soon 😉), doesn’t it?
The only difference is, here you are giving that money a job to bring back more money, which grows your wealth in the process.
Luckily, there are different types of investments that money can go into, which include:
•Stocks – Buying a piece of a company. If the company grows, your piece becomes more valuable.
• Bonds – Like lending money to the government or a company, and they pay you back later with some interest (coupons).
•Mutual Funds – A basket of different investments (stocks, bonds, etc.) managed by professionals, so you don’t stress about picking each one yourself.
• Pension – Money you (and sometimes your employer) save for when you’re older and done working.
• Side Hustles – Extra income streams outside your main job, such as freelancing, selling stuff online, content creation, etc. Basically, you’re adding value by investing in yourself.
- Compounding (or compound interest) is the interest you earn on both your original money (the principal) and on the interest that has already been added—basically, money reproduction. Don’t let the grammar confuse you, okay?
For example, if you save ₦5,000 at 10% yearly interest, you’ll have ₦5,500 after one year. In the second year, 10% is calculated at ₦5,500 instead of just ₦5,000.
The secret to compounding is Time, so start early and now so your future self can send thank you notes.
“The longer you leave it, the faster it grows”
- Diversifying means spreading your money into different types of investments so you’re not depending on just one. If one fails, the others keep you safe. If a farmer puts all his eggs in one basket and it falls, he loses everything. But if he keeps some to sell, some to eat, some to hatch and some to process, losing one basket won’t break him. You get me 😉?[TO3] [TJ4] as great as it is, you need to be careful not to over-diversify… but that’s a topic for another blog.
Bottom line (for skimmers)
Investing puts your money to work, compounding grows it over time, and diversifying protects it from crashing.
Put all these three together and you have yourself the ultimate wealth-building cheat code👌🏾.
Never forget that your yield all comes down to your patience, consistency, and determination in the end.
All of these can be your long-term bestie or your destructive worst enemy, so however it turns out it depends on you.
“Little by little, the bird builds its nest.”🐦💙🪹
With BluNest, every little step you take becomes a branch in your nest. Start today and watch your future flight. ✈️
