Saving money is the first step to creating wealth. If you do not save, definately you’ll have nothing to invest thus creating wealth. In this article, I’ll venture into places or accounts that you can consider to save your money for investments.
- Bank Savings Account
Most banks have saving accounts one can earn interest and the same time your money is save. Examples are like KCB simba save,equity easy save etc.
2. saccos
Offer high interest rates and also affordable sacco loans that have lower interest when compared to banks. Examples are like stima sacco, kencream sacco, mwalimu sacco etc.
3. Money Market Funds
Offer good interest rates and compounds monthly for most MMFs. Examples are like Etica, sanlam, CIC etc. They are low risk, easy to start and one can withdraw any time.
4. Fixed Deposit Account
This locks your money for a set period of time like 3-12 months and in some cases upto a year. They work best for target savings when you are working towards a goal. All banks have fixed accounts.
5. Saving Applications
This encompass things like mshwari, KCB Mpesa, Branch etc.
6. Chama
Chama’s can also act as good avenues for saving. A group of friends come together, contribute finances and hand over to one person who can then use it for a big project.
This are just some of the few places you can save your money in. But they are many. I would advice a person to save with a goal. This saving avenues should act as your sinking funds. They are only intended for a purpose like paying fees, buying a car, a vacation among others.