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Does Saving Make You Richer?
Carbon
August 20, 2021
3 minutes

Everyone wants to make more money than they already have. You know how many times you look at your account balance and you go, “this is just not enough.”

And if Burna Boy’s “Dangote” is anything to go by, Africa’s richest man seems to want more, too. It’s just the human condition: we always want more. 😉

But, is saving money the route to the wealth you desire?

Hmmn...the answer is not as straightforward.

Saving, in and of itself, won’t make you an overnight millionaire or billionaire. However, that will be looking at it simplistically.

It’s like a beautiful mansion. What we see is the aesthetics but what holds everything together is a solid foundation. Saving is like that, too. It can be the base from which to build wealth.

This is to say that consistently setting aside some funds can have an indirect impact on future wealth.

Funding your dreams, one lump sum at a time

Many times people realize that the best way to get ahead in life is to undertake a career upgrade or a complete job switch. For instance, this may mean going for a Masters abroad or moving to a different country where you can increase your earning power.

Projects like this take time and require money that you may not have sitting in the bank. So, what to do? A solution is saving lump sums from a current job while you set things in place.

Your dreams are valid and chasing them can be the path that leads you to a happier life while enjoying a positive spike in your finances.

Doing more than just saving

Money and wealth come in different ways. And while we agree that saving can set the pace for that, you can play the long game by adding a couple of other wealth-building initiatives to the mix.

Here are some things you can do to better your finances.

  • Investments: Many people have become millionaires by putting their money in investments like stocks and real estate and getting great returns. Unlike savings though, investments come with a much higher risk. Bearing this in mind, you need to analyse each investment and more importantly, start small.
  • Side hustle: Having multiple sources of income can unlock another level with your finances and even make you more money than your main job (like the person in the screenshot below).
Source: Zikoko Mag

Building wealth for others

Sometimes, the goal is to ensure people we care about the most have the best life. An example is a couple with kids. Securing the financial future of your kids can mean setting up a savings plan for them right from when they are three years old up until they turn 18.

In the grand scheme of things, it doesn’t necessarily make the child wealthy when they reach that age, especially depending on the amount you’ve been saving. However, by saving towards their future early, you’ve increased their chances of navigating their dreams without worrying too much about money. All while getting high returns on your savings over time.

It all boils down to discipline

No one becomes rich overnight. Achieving any great thing in life requires dedication and a high level of discipline. Whether you’re saving, investing, or building a new venture, you should always have it at the back of your mind that you’re playing the long game. Staying true to your goals is key to success.

Whatever your goals are, there’s a plan with a Carbon bank account and industry-high interests to go with. Just pick one that works best for you and start building wealth.

An account tailored just for you

Open a new Carbon bank account from your phone or computer and follow the simple on-screen steps to register for an account in minutes.