The cumulative power of savings
We often underestimate the impact of small and consistent actions. That’s often the case with monthly savings. If you struggle to see the impact of monthly savings, look twice!
Today I take the example of remittances that economic migrants send back home. Those remittances come from their hard-earned money, but more precisely, from their savings.
Although some transfers might look “small”, they can make a huge difference back home. In many countries, remittances lift people out of poverty, put food on the table, pay for education, cover the health expenses of family members, allow housing investments and many other family goals beyond consumption.
I find the magnitude of remittances mind-blowing: 2021 remittances flow (US$605 billion) more than tripled the total amount of international official development assistance (US$178.6 billion), said IFAD.
Let me repeat it in simpler terms: the savings sent back home by 200 million migrant workers (252 USD/per month on average terms) are three times the volume of international development aid! And the trend will continue. In 2022, remittances are expected to reach US$630 billion, providing a lifeline for more than 800 million family members.
Bottom line? Every month you save money, either to send it back home or to put aside for rainy days; you can rest assured that those tiny drops, day after day, will eventually make a difference. Those tiny efforts will be the drops that fill up an ocean. Just Keep going.
Keep It Real. Sweat Your Assets.
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