Mr Stanley Ogoe, Western Regional Director of the National Pensions Regulatory Authority (NPRA) has urged traders in the Sekondi-Takoradi Metropolis (STMA) and the Effia-Kwesimintsim Municipality (EKMA) in the Western Region to make good use of the profits they made during the Christmas festivities to improve on their business and better their lives.
He further urged them to put the profits made into savings and investment accounts to grow the money rather than spending the money on things that will bring no dividends.
Mr Ogoe who gave the advice in an interview noted that business activities were booming during the Christmas season thereby generating much revenue to traders hence, the need to make good use of the profits made.
He also noted that people spend the money they make during such seasons on frivolous things which bring no dividends but mere pleasure.
He described a savings account as an interest-bearing deposit account held at a bank or other financial institutions and called on traders without savings account to have one at the banks.
He said, though savings accounts typically pay a modest interest rate, their safety and reliability make them a great option for parking cash you want available for short-term needs.
Savings and other deposit accounts are important sources of funds that financial institutions use for loans and for that matter, one can find savings accounts at virtually every bank or credit union, or at some investment and brokerage firms.
However, he stressed that having an investment portfolio could help them achieve their long-term financial dreams like investing towards their retirement, repaying their mortgage early, or paying university fees for their children.
Mr Ogoe also advised the traders never to invest without having an objective or a goal but should have in mind what their plan is, why they want to do the investment and figure them out before they invest their money.
He enlightened that there are many reasons to have set goals, but the big one was that it helps you stay on track with your savings since, without goals, you will not know the timelines for you to do what, and to achieve what and, more importantly, how much risk you can take on.
According to him, once you have the money available, you can start investing straight away in that the sooner you invest, the longer your investment has to grow, however, investing a regular amount each month can help iron out fluctuations in the stock market, particularly in a volatile market.