27 Feb 2025
Learn the situation when a person lives in another country, making a living in Belgium, for example, and in the meantime, needs to provide for the family living in Gambia. Savings and investments are vital to saving because they serve as two diverse, practical approaches to attaining financial security. Sometimes, you may be planning for the future and need to differentiate between saving and investing.
In this scenario, understanding the nuances of international money transfers becomes equally crucial, as efficient remittance strategies directly impact the amount of support reaching the family in Gambia. Additionally, navigating the tax implications of both income earned in Belgium and funds sent to Gambia requires careful consideration to optimize financial resources.
Savings simply mean putting a certain amount of money aside routinely as income. The money is normally deposited into such low-risk products as savings accounts, money market accounts, or certificates of deposit. Funds ensure immediacy, which means they are always available once there is a need to use them. This makes it appropriate when one has short-term goals or wants to take care of an emergency. Establishing little savings when transferring money from Belgium to Gambia can make a lot of difference when you are faced with a situation where you need to cater to a family emergency.
In Belgium, for instance, the interest rates of the savings account have been estimated to be 0.11%-0.50%, which is annual. Though it looks like this is only a small income, it provides stability and quick access to cash without investing the capital. When it comes to the actual financial tools for people who make a money transfer from Belgium to Gambia, it is reasonable to have a high savings balance so that you can have some money in case of need without affecting the rates of the market.
Financial means acquiring assets like shares, bonds, property, or companies intending to get a better return out of your investments in the future. Savings normally involve much lower risk than investment, although the latter has the possibility of yielding more returns. The main goal of investing is to create wealth that will take a long time, and therefore, it should be used when planning for events that will happen in the long run, such as retirement, the purchase of property, or starting a business.
Being able to invest in the stock markets, you can target the Belgian stocks or even go as far as investing in mutual funds or even houses. Investment entails certain losses, but the gain that may accrue from investment is more especially over time. The Belgian Financial Services and Markets Authority has stated that in the last 10 years, the stock market return was 7% per year on average. For the Gambians seeking to earn a living within the Belgians, managing an investment can help open financial opportunities for individuals to invest for the future and be of greater help to their families and friends by helping them grow their money in the long run.
Here is the comparison between savings and investments:
Saving and investing are two activities that are different in one major way: risk. Consequently, the return on savings is assured, but the returns themselves are small, entailing minimal risk. While investments attract higher returns than their counterparts, they work hand in hand with certain exposures to losing cash.
For the people of Gambia in Belgium, both savings and investment are important so that they are equipped with both strategies to apply between the short-term need to send money to Gambia from Belgium and the long-term goals.
Savings are highly accessible, and you can quickly get your money back at any time you desire without a penalty. This makes savings suitable for use in such cases as emergencies or transferring funds quickly to the Gambia through money transfer organizations online. Investments, though, are more capital-intensive and are not as liquid as the current assets. You may have to wait for a longer period before you can get your money, and the selling of securities may attract fees or penalties if made before a given time.
Despite their importance in providing for rainy days, their growth is very slow because of the low interest rates being charged. Hence, though risky, investments allow a much of returns. For example, if you invested €1,000 in the Belgian stock market 10 years ago with compound growth of 7% p.a., the value of your stock today is approximately €1,930. This, equivalent to a savings account earning 0.5% in interest, would equal only €1,050.
In the case of the Gambians in Belgium, it is sometimes wiser to save. If your main purpose is to do a money transfer from Belgium to Gambia for your regular expenses in the future or for some upcoming bill payments, then there’s no better option than savings. Savings accounts have high liquidity, which helps to access money whenever required without an inferior chance of losing it.
Also, if you plan to relocate to Gambia shortly or have near-term expenditures in mind, like a house or car, savings ensure stability. Avoiding or minimizing risky investments should be advisable when such an environment prevails.
Savings are more appropriate for the accumulation of funds for long-term goals. For instance, if one is targeting to build a kitty for retirement or is pursuing wealth creation over an extended period, then an investment affords one a chance to create wealth more quickly than might be possible with savings. Further, if you are willing to take the risk, the stock market or real estate investment can yield far better returns than letting your money sit in a savings bank account.
To any intending Gambian who wants to send money online to Gambia from Belgium or should consider their financial obligations in Gambia regarding the ability to gain more wealth through investment opportunities, it is possible to achieve better economic results in the future while still being able to support the family members in need through transfers financially.
In conclusion, savings and investments are two different forms of savings that may be chosen depending on the objectives, the level of the buyer’s risk, and the term. While there is nothing wrong with saving and investing, many Gambians who live in Belgium should ensure that they are involved in both to become successful investors.
Requirement satisfaction, which may not necessarily be daily, includes security and convenience. For example, when one needs to send money online to Gambia from Belgium, savings provide that security and convenience. Investing offers significantly higher returns than saving over the long term for developing an individual’s fiscal capital.
Your financial objectives and risk tolerance will determine the best course of action. Saving is smart if you have short-term objectives and want a low-risk solution. Investing can be a better choice if you have long-term objectives and are prepared to take on some risk.
Consult a Professional: If you want individualized advice, think about speaking with a financial advisor.
