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If you ask 10 Nigerians about money, at least 7 will tell you, “I want to invest.”
Crypto. Real estate. Forex. Stocks. Side businesses.
But here’s the uncomfortable truth many people skip👇
Investing without proper savings is gambling.
So the real question isn’t savings vs investment — it’s what comes first?
Let’s break it down:
What Is Savings (Really)?
Savings is money you set aside for certainty.
It’s not about high returns.
It’s about stability, access, and safety.
Savings helps you:
- Handle emergencies (medical bills, rent, car issues, etc)
- Avoid borrowing at crazy interest rates
- Sleep better knowing one problem won’t scatter your finances
In Nigeria, where:
- Income can be unstable
- Inflation rate is high
- Emergencies are unpredictable
Savings is not optional — it’s survival.
What Is Investment?
Investment is money you put to work for growth.
This includes:
- Businesses
- Stocks & mutual funds
- Real estate
- Agriculture
- Digital assets
Investments are important, but they come with:
Risks Like:
- Lock-in periods
- Market fluctuations
Meaning: You can lose money. You can’t always access it quickly.
So… Which Should You Prioritize First?
👉 Savings. Always savings.
Here’s the smart order:
Build your savings first, then invest from a position of stability
Why should you do that?
Because when life happens (and it will):
You won’t panic or sell your investments
You won’t borrow to survive
You won’t withdraw investments at a loss
The Ideal Nigerian Money Structure
A simple framework that works:
1️⃣ Emergency Savings (First Priority)
- Should be 3 to 6 months of basic living expenses
- Easily accessible
- Low risk
2️⃣ Goal-Based Savings
- Rent
- School fees
- Festive periods (Christmas, Sallah, Easter)
- Planned expenses
3️⃣ Investments (After Savings Is Stable)
- Long-term wealth building
- Higher risk, higher return
- Not touched for emergencies
Common Mistake Nigerians Make
Many people: skip savings, jump straight into investments and then panic when cash is needed.
This leads to:
- Selling investments too early
- Debt cycles
- Financial stress
Savings protects your investments.
Savings won’t make you rich.
But it will keep you stable long enough to get rich.
If you’re choosing between saving and investing, choose savings first — then let investments grow from a solid foundation. With Savingsbox, you can structure your Savings and even get an interest of up to 20% on your savings. How good is that?
Start today, your future self will thank you.