Tuesday, March 02, 2021
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Why Should You Invest?

Investment is putting money into something with the expectation of returns within an expected period of time. Investment is related to saving or less spending. You can add to your future income by having your money do the work for you. Investing should always be done with the aim of ‘growing your money’ by having it gain interest, which requires time.

Lazy money serves the shops, working money serves you.

Placing money under your mattress is not the best or smartest place to keep it. It doesn't pay interest, inflation eats away at it, and, if you have a burglary, it is all lost.

Available to the average individual in Guyana, the most safe and common place to invest is in a Fixed Deposit Account or Certificate of Deposits (CDs). Unlike ordinary savings account, CDs offer a higher rate of return and requires commitment to an agreed time period before withdrawal. This stems the urge of going on shopping sprees and impulse-spending. Terms of commitment may range from 3 months to 6 years with higher interest returns the longer the money stays in the account. 

Funds for emergencies should be kept separate from investment funds because it is not easily accessible when emergencies arise.

Generally, it is recommended to invest your money when budgeted needs are met and you are left with extra cash. Other forms of extra cash come from receiving an end of year bonus, cash as a result of inheritance/settlement or job promotion.  All of these can provide a base to start investing and earning interest. 

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