Cowrie Wise, Naira Foolish?

Banks and other financial institutions would insistently emphasize on the importance / necessity of saving. The question is whose future they are concerned with. Yours or THEIRS? They need your money to trade with, so.

Nothing gives better peace of mind like money in the bank, right? A penny saved is a penny earned, not so?

But, I have a slightly different take on this. ..

Someone was promoting an automated savings scheme (Cowrie Wise) that allows you set aside, as savings, a fixed amount weekly biweekly, monthly, as you wish, with a guaranteed return of 10% -15%/year

In a hyper_inflationary economy, I feel savers are losers.
No, don’t save. What measly interest would counterbalance the unrelenting inflation rate?

Invest instead, look for investments that allow you to earn decent income, while ensuring you can pull out your funds – if, when, or as, you need it.

If you can afford to save ₦5K monthly, you can invest that money with that trustworthy pure_water or tomato seller, instead.

I think it is a better deal than saving your money and having inflation eat up the real value, along with the promised miniscule interest ..

The idea behind the Cowrie Wise scheme is premised on the fact that many people cannot drop say, N5,000 for investment – at a go. Too many expenses.

As such, if such people will invest, they need a system that helps them have the discipline to save small amounts of money daily, weekly or monthly.Which is where an automated saving system like CowryWise comes in.

Save gradually, be it to pay school fees or to invest.

Following is the divergent thoughts on consistently saving your money in a low yield scheme like Treasury Bills or Cowrie Wise, versus actively investing in businesses – for far higher returns (with higher risk, of course).

The eternal balance between safety and ROI on real investment..

But GTBank for instance has a provision for regular, consistent automated savings, just like Wema ALAT. Why this your own o?

Higher interest. You will get say 4% from GTBank, 10% from ALAT, and 10-15% from Cowrie.

I just did a small transaction where I got 18 percent for a one MONTH transaction. No coercion, willingly offered.

Some risk, yes, but 15 percent per annum on funds…? When inflation rate is higher than that? In real terms, you are probablylosing money – at worst, and not making any money at best…

I have told you you are a rich man. Let small people get a start o….

Ha! Noooooo

I do business and can’t even get you 18% interest if you lend me money for a project. Many others are in that situation. Shey you grab?

Even better, saving with a scheme like CowryWise is a means of investing without risks. Savings are put in risk-free assets.

En en? I would honestly want to know what assets are totally risk free in Nigeria of today. Ja mi si.

Real estate? There are numerous houses for sales, lease or rent lying empty for more than two years. Go to Ikoyi in Lagos. Go to Abuja.

Treasury bills are risk free. Debentures, Government bonds too..

Yes. But those are investments for investors with ₦100 million to invest na. You invest in those low yield, risk free schemes with idle funds, when you are already comfortable.

I don’t have idle funds yet, abeg.

Exactly. That’s the point behind a service like CowrieWise. The small guys can enjoy some benefits without having millions of naira to invest. It is like crowdsourcing, for lack of a better word.

I see. But…

Can the small guys afford to invest in ventures with such small returns?

The poorer you are, the higher the risk you need to take to break into the elite class, by investing in real ventures that give better returns, like that pure water selling..

How much interest would a ₦100k investment give in a whole year with something like Cowrie Wise?

You have a point, but then, a progressive approach is not a bad idea for most people. Save/invest small small, then explore more risky investments as you have more cash in hand. Diversification, actually.


There is certainly some sense in having savings. After all, cash is king, and the guy who has finds can often take advantage of great ‘once in a while’ investment opportunities .

But, my view is that investing is always always better than passive investments like this Cowrie thingy.

Your view?

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