I have always loved the idea of saving—probably because of how safe it makes me feel. You know that warm, fuzzy feeling that comes from knowing you have something tucked away, just in case? Yeah, that. From the days of saving feeding allowances in a ‘kolo’ (which I proudly broke when I needed to), to hiding folded naira notes in a zipped purse, I believed in the magic of keeping money aside. Sincerely, it just made me feel safe. Then came the grown-up phase—bank accounts with little to no interest, and eventually, fintech platforms that paid me for saving. It felt like an upgrade, and honestly, I was content.
Until the questions started creeping in: Can I invest? Should I? When do I know it’s time to stop saving and start investing?
These weren’t easy questions. I had grown up being taught that saving was the security needed. Investment felt like another universe—one filled with risks, charts, market swings, and let’s not forget, potential losses. But things changed when I read The Smart Money Woman by Arese Ugwu, and later watched the screen adaptation by Azuwa Studios. Beyond the glam, I saw real-life financial issues—black tax, lifestyle inflation, and yes, the difference between saving and investing.
If you’re at this point too—figuring out how to take your savings seriously or why your financial life deserves more attention—these two reads might help:
Spare Change Into Serious Savings: Easy Hacks For You
Why You Should Take Your Financial Life Seriously
Saving: The Safety Net
Saving is like having an umbrella for life’s unpredictable weather. It prepares you for emergencies, helps you meet short-term goals, and gives you peace of mind. It’s what you turn to when your phone screen shatters or when you suddenly have to fund an unexpected trip. It’s the low-interest savings and the high-interest savings. It’s locking your money in a fintech platform for some time. It’s also separating your emergency funds from your monthly budgets. Savings are liquid, easy to access, and generally low-risk. But here’s the thing—they don’t really grow.
The money you save today is almost the same money you’ll have next year (except for the interests from your bank or fintech app). And while savings protect you from storms, they don’t build the house.
Investment: The Growth Engine
Investment, on the other hand, is what makes your money work for you. It’s the big brother of savings—bolder, a little unpredictable, but with the potential for bigger rewards. It’s real estate, mutual funds, stocks, side hustles, and a lot of calculated risks. It’s also that investment in yourself.
Investing is about building wealth over time. Yes, it comes with risks—but it also comes with the possibility of returns that savings alone can’t offer. The trade-off? You lose some of that instant access and peace-of-mind savings give, but you gain the potential for growth.
Ask yourself:
- Do I have an emergency fund that covers at least 3–6 months of my expenses?
- Am I saving just to feel safe, or do I have clear goals?
- Can I afford to lock some money away for a while?
- Am I willing to learn and take calculated risks?
If you’re still trying to build a safety net, focus on saving. If you’ve already got one, it might be time to start small with investing.
The truth is, it doesn’t have to be one or the other. You can save and invest—just not blindly. Read. Ask questions. Start with platforms that offer low-risk investment options. And most importantly, understand your money story. Mine started with a ‘kolo.’ Yours might start with a stock.
Saving made me feel safe. Investing made me feel smart. Now, I’m learning to feel both. This is just one person’s journey with money, yours can start wherever you are.