So Now You've Saved the Money, Where Does it go?

So you've decided to save first like a responsible adult.

Cue applause.

But now you're staring at that money like: "Okay...what now?"

Let's talk about where that cash should actually live, because your money needs a home that can nurture it and make it grow.

We're gonna go through a few Rules to follow and pick it up from there.

RULE #1: Don't mix your Savings and Investments

They're cousins but not roommates. They are related, but both serve different purposes.

Savings = Safety Net
This is money you might need soon or unexpectedly.
  • Emergency Fund (broken phone, random outings or even medical drama)
  • Short-term goals (travel, skin care package, a new laptop, etc)
Where to keep it?
  • High-Yield Savings Account, eg M-Wekeza
  • A savings app/account with withdrawal limits, eg WADU account from TCB Bank
A Tip: Keep it easy to access but not too easy. You don't want to see your emergency fund during a random shopping scroll on AliExpress.

Investments = Future You's Money
This is money you don't need to touch for months and years. This is solely for future You.
What does it include?
  • Stocks
  • Bonds
  • Mutual Trust funds 
  • Retirement Accounts 
Where to keep it:
  • Investment platforms ie DSE (For Tanzania)
  • Unit trust accounts ie Utt Amis, WHI Funds
  • Brokerage Accounts, eg iSave and iGrowth from iTrust finance, Timiza Fund from Zan securities and many more.
Tip: This money should feel far. Like, in no way can you withdraw it easily. Remember we're letting it sit and marinate, not babysitting it every day.

That's it. That's the rule...for now. 

Bonus Tips:

  • Name your accounts 
Seriously, you can name one "Soft Life Fund" and another one "Do not Touch". You can even name them as per the purpose they serve example, "Car Fund" or "Retirement Plan"

  • Use automation
Take advantage of standing orders provided by the banks so the bank or even an app moves the money before you even notice it and you will eventually forget about it.

  • Track it visually
See your progress. It doesn't have to be a complex Excel Spreadsheet; just a minimal template would do. This is so you can see how much your progress is and how far you are from achieving your goals. Just use anything, a tracker app, a planner or just a bar chart.

Lastly, it's not about having a lot of money, it's about knowing what to do with the little you have. And dear, you're already doing better than most by being intentional.

Next Up, we're going to discuss more about investing since we've already gotten you on the Savings track.

Catch you then.

Yours truly,
Walletwhisperer💅📈    

 


Comments

  1. KT15 May 2025 at 14:39

    Thanks for this actually - especially the short term savings element, I struggle to know where to place my Studies savings and future funds, this has been a great help and I’ll definitely utilize the knowledge. Keep up the good work Wallet Whisperer :)

    ReplyDelete

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