Mistakes are common when savings and investing; however, many can be avoided if you identify and resolve them. In this blog, we will look at 4 common mistakes people make when saving and investing and how to avoid them. This blog is a recap of the “Savings and Investment Mistakes to Avoid in 2020” webinar which was a collaboration between the Barter and Cowrywise team.
1. Not paying yourself first
Paying yourself first is a personal finance mentality which means putting a specified amount of your income aside for savings and investment before paying for your monthly expenses or making any purchases. Paying yourself first is an effective way of making sure you continue making contributions into your savings or investment accounts each month.
2. No defined goals and direction
You will need to determine or state the exact thing you are saving towards. Whether it is to pay for your rent, new mobile phone, laptop, vacation or car, you will need to determine what exactly you are gearing your savings or investments towards. Once you know what you are saving for, it will be easier to know how much money you need to reach the goal.
3. Finding quick wins and shortcuts
Delayed gratification is a vital skill required in wealth building. You must play the long term game rather than finding the quickest way to double or triple your money with unscrupulous institutions within the shortest possible time. Quick returns and shortcuts may lead you to Ponzi schemes and fraudulent companies.
4. Not leveraging digitization
Through digitization, you can automate your savings and investment to make the process simpler. This will save you from unexpected expenses and enable you to leave within your means. Automating your savings means automatically making deposits to your investment or savings via digital platforms via Barter to platforms such as Cowrywise.
To automate or top-up to a Cowrywise account, follow the steps below:
- Log into your Barter app.
- Click on Send Money.
- Click on the “Send to Cowrywise” option.
- Enter the amount you want to fund your account.
- Select “Send Money” and add your virtual bank account details as assigned to you by Cowrywise. Enter your pin and complete the transaction.
- That’s it; your Cowrywise Stash account gets topped up instantly.
Saving and investing money is essential since it provides security and freedom. And while there are many reasons to save or invest, you just need to find a reason that resonates with you. Whether it’s for financial freedom or just having a little more fun, you owe it to yourself to make saving and investment a priority.
Have questions? Email us anytime; we’re happy to help!
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