How to save for short term and long term – Financial analyst, Wole Gbadamosi

Wages and salary are sweet rewards of hard-work, but a lot of earners are not sure of what to do with it or how to save from what they earn. On WakeUpNigeria this morning, financial analyst, Mr Wale Gbadamosi spoke about the importance of saving and ways to save.

He pointed out that saving is very important and it buys time for those who save.
“Saving buys you time, you will be glad you did. It gives you peace of mind and time to plan if anything comes up. If one losses his job, he has enough time to plan before getting another job.”
He also differentiated long term saving from short term savings.
He explained that short term savings is when one is saving for an item or an event while long term savings is for uncertainty.
To buttress this, he said:
“Life is uncertain but the ability to save is certain because we cannot control life but we can control our savings. To save, you must have an objective but 10-15% of your salary is advisable for long term while lesser for short term depending on what you want to use if for.”
He then advised that people should not spend money or their bonuses while they are emotionally high or low but they should relax and be objective.
He then hinted a little on investment, noting that investment is a type of saving but comes with a lot of risks and a big reward too.
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