Monday, May 22, 2006


What is saving? Saving is the amount of money that you set aside from your income for future spending. A lot of people go through their active age without saving for their old age. This has led to many people having to work until their bones break. The inefficiencies of the pension system in most countries means that most of us will have to save for our future.

People often have lots of reasons for not saving. These include low income, high expenses, high debt, recession, inflation and so on. However, there is no justifiable reason not to save spending all the money you earn endangers your future.

A little savings every month on some investment can enable you manage your future well. Remember, time is money; the longer you save the more returns you expect on your investment. For example, if you invest a savings of $100 every month in an investment that returns 1% every month for 10 years your savings after this period
will be more than $23,000. If this is done for 20 years you will get more than $98,000.

On the other hand if this is continued to 30 or 40 years the accumulation will be $350,000 or $1.18 million respectively. This shows that saving from a very young age can be profitable. However, it is never too late to save. Your returns depend on the length of time you save, annual or monthly returns, and the amount of money you save.

HOW DO YOU SAVE? A lot have been said about the right amount to save, some say 10% of income others 15%. However, the best is to save depending on each month’s income and needs. For months with surplus save more, but no matter how bad a month is do not save less than 5% and don’t save less than 10% for more than 2 consecutive months.


Just taking aside a portion of your income is not enough. This money must be put into investments that will bring you returns. Some of these investments include:

Bank securities like savings account. This is one of the safest investments you can think of but comes with low returns on investment.

Another investment opportunity is the stock market, this is also safe and recommended for long-term investment programmes. It also brings good returns and most stock markets protect investors from losing all their money. Before investing in stocks employ the services of a licensed stockbrokers.

You can also invest on residual income programmes. These programmes give you products to promote for them and each time your referral buys the product you get a generous commission. If your referrals brings more referral you will still earn commission from there referrals upto the 5th generation of referral. You can make a lot of money in 2 years with such a programme. Once on top your income will continue to stream in. the secret is to promote product that people buy monthly or quaterly.

Affiliate programmes are similar to residual income progrmmes ,but you will only be paid for sales directly initiated by you.Affiliate progammes are automated, you will be normally given a free website to direct people to and if they buy in this website you will be given a handsome commission.Some affiliate programmes are so automated that they store the IP address of your prospects, so that even if they do not buy immediately,whenever they buy (even as long as 6 months later) the sale will be traced back to you.All you need to do is to promote your free website (ie. Invite people to your website).

Google,the most popular search engine in the world with more than 200 million impressions a day has come up with an advert solution called google adword for affiliate marketers.This is a programme that enables you bid for keywords that people searching for the type of product that you are promoting will entering in the search box.

To register you select keywords that people looking for your type of product are looking for. Eachtime somebody types in such a keyword your ad will be displayed with the search results.
Google adword is flexible and convinient,you pay for actual clicks on the ads and not on the appearance of the ad.It can also be used to promote any website ,not just affiliate programmes.

Another investment option is High Yeild Investment programmes(HYIPs).This programmes invest your money on the international forex trade.This programmes ask you to invest any thing between say $1 to $10000 and that they will pay between 0.5% to 3% daily if you invest in their programmes.As the name implies it is high yeilding this also implies that it is high risk.Some sites now offer ratings on different HYIPs . Use them at least to reduce the risk invest in hyips on top of the rating.

Other investment options include coporate bonds, munincipal bonds, treasury bills ,bonds, morgages, Insurance annuities, undeveloped land, real estate, precious metals, gold, silver, oil, gas, commodities speculation, collectibles, rare painting, livestock and more.

What next?

Now starting this month ,put aside not less than 5% every month and not less than 10% for more than 2 consecutive months. Invest initially in low risk investments like savings account, stock market and free affiliate programmes. However if you have more money to spend then try HYIPS and residual income programmes they can bring returns on the short-term so, what are you waiting for?