As Saudi Arabia charts an ambitious path to nearly double personal saving rates for every household, World Savings Day reminds us why building wealth starts with smart saving.

Each year on October 31, World Savings Day encourages people worldwide to understand the value of saving. In Saudi Arabia, this message is resonating strongly, with a national goal under Vision 2030 to raise the personal savings rate from 6% to 10% by the end of the decade. So, why is saving — and investing — so essential?

Across the globe, awareness of the need to save and invest is on the rise, with people seeking innovative solutions to grow their wealth.

Here are 5 reasons to start saving and taking control of your financial future.

1. Building Wealth 

Strategic investing is key to seeing your money grow. Studies show that smart investments can help your funds outpace inflation over time (Wells Fargo), meaning a solid investment strategy can help people achieve more from their hard-earned savings.

2. Diversifying Income Streams 

Having an investment portfolio can cut risk by up to 30%. Crowdlending platforms like Lendo enable this diversification by allowing investors to finance credit-worthy Saudi SMEs across various sectors, tapping into alternative investment opportunities for potentially higher returns.

3. Preparing for Retirement 

Retirement readiness is becoming a global priority. Studies indicate that setting aside a portion of income for investment supports both individual financial independence and broader pension stability (OECD), through programs that encourage long-term saving. When people allocate a portion of their income toward investment plans, they secure their future and contribute to national pension sustainability.

4. Ethical & Sustainable Investments

A growing segment of investors prioritizes ethical and sustainable investments. A Morgan Stanley survey found that 72% of investors globally actively seek investments that align with their personal values (Morningstar). Lendo's Shariah-compliant model ensures that investments meet ethical standards and comply with Islamic finance principles.

5. Financial Resilience in Uncertain Times

Global economic trends highlight the importance of a strong financial safety net. Many households are recognizing the need to bolster their emergency funds due to economic fluctuations (IMF 2024). Financial experts typically recommend saving three to six months' worth of living expenses. This buffer allows individuals to navigate unexpected challenges without falling into debt, aligning with the growing emphasis on financial literacy and resilience.

The importance of saving and investing in Saudi Arabia is underscored by recent reports on financial literacy and savings products. According to KPMG, the household savings rate in Saudi Arabia remains comparatively low, largely due to limited savings tools and financial literacy. But this is changing, with user-friendly, Shariah-compliant investment options like Lendo empowering Saudi citizens and residents to make the most of their savings while supporting the local economy.

This World Savings Day, why not take a step toward a stronger financial future? Keep exploring investment opportunities on Lendo’s shariah-compliant crowdlending platform.