This Is Why Micro-Saving And Investing With upnup Just Makes Sense

Justin Asher is head of marketing & strategy at upnup, a new fintech platform designed to change the way South Africans save and invest using small amounts.

I’ve recently been asked by many friends, and those who read our posts: what is so game-changing about what we do? The answer sometimes requires attentive listening, a whiteboard with coloured pens and a few websites to emphasize the positives.

That’s until now, of course. I had a bit of a brainfart in the last few days as I thought about what we do, how we do it, and why we do it. The reality is that South Africans have a very poor savings culture, in general of course. When one Saffer talks to another and mentions the word “saving”, it’s usually followed by a phrase like: “I have no money to save” or “I have nothing left at the end of the month”.

So I started thinking about these statements and wondered why I spent so much time trying to explain the unique benefits of what we do instead of focusing on the obvious. Of course we think we have no money to save because every bit of retail advertising in front of us is a constant reminder of how expensive things have become. When was the last time you saw an advertisement for a product without a discount applied? Even if you saw one yesterday, you still had to think about it for a moment. But in this regard, we’re led to believe, even if rightly so, that everything is now just so expensive that saving is impossible so hey, here’s a discount.

Add to that the scary thought of having nothing left at the end of the month. Please don’t get me wrong, there are certainly many South Africans who truly do have nothing left at the end of the month. They live far from the edge of financial independence because inflation has taken its toll, costs for basics have gone through the roof and no financial app, system or advisor has ever been able to offer them a real way of preparing for things like pandemics and recessions.

But, when it comes to our particular target audience – those who earn above a certain threshold and have a certain spending behaviour – it’s understandable that come the end of the month, they’re led to believe that there’s no more money to save. They’re not necessarily big spenders at all, but they’re rapid spenders meaning they’re accumulating transactions on a daily basis for various items that range from the standard grocery, rent and fuel payments to the more elaborate eating out, alcohol and fashion purchases

When it comes to the “not enough money to save at the end of the month” argument, we totally get it. Of course there’s nothing left because they’re either already invested in one or more traditional savings options or they’ve simply been spending throughout the month at such a rapid rate that the accumulated expenses merely add up to whatever it is they earned. Rapid spenders.

This is exactly why micro-saving and investing with upnup makes total sense and this is precisely why the way we do it at upnup, is indeed a game-changer. The upnup platform simply works off the transactions made through a user’s linked bank account. Accumulate daily transactions, and the platform accumulates daily savings. It’s like tipping yourself for good work at the till point. Instead of spending your tips right away, you’re investing them in a non-traditional asset that not only has exceeded expectations in its growth, but one that the world is slowly adopting more and more – Bitcoin.

And this is another reason why upnup is a game-changer. Many of us (me included) would normally never look at investments in these so called “non-traditional assets” like crypto currencies. That’s fine, because it’s ok to be a little worried about stashing all your leftover monthly funds into a cryptocurrency exchange with the worry it may depreciate – after all, that’s a natural feeling even the most educated and experienced investor anticipates when buying even the most stable shares on a traditional stock market. 

Acquiring assets like Bitcoin, over a long-term period on a weekly basis, plays into the concept of averaging out your investment purchases. Instead of going in at one price and hoping for the best, you’re stacking at a rate that over a long term period gives you far more peace of mind because you’re not exposed to its volatility as you would if you made that once-off purchase in the digital currency.

So for these reasons, upnup makes sense. 

It’s a way to accumulate small amounts of savings for an investment that you never would have entered into under normal savings and investment circumstances. 

It gives you an opportunity to diversify your portfolio with little-to-no effort and by accumulating savings based on your spending habits, you’re effectively not waiting until month end for that “massive amount” to be deducted from your account.

If you haven’t yet started your micro-savings and investment journey with upnup, the good news is now is a good time – Bitcoin is on discount.

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