How to Turn 20,000 GYD a Month into Big Money Moves

Depending on your income, saving 20,000 GYD a month might sound like a lot. As a mom, I totally get it—expenses can be tighter than my toddler's grip! But here’s the secret: you don’t need a fortune to start building one. Whether it’s 20,000 GYD, a bit less, or even more, what matters is consistency. Set up a standing order from your digital wallet or online banking and let your money work harder than you do at bedtime.

Step 1: The Secret Sauce – Start Small and Stay Consistent

Commit to saving 20,000 GYD a month. It may mean cutting back a little, but you won’t have to skip every treat or feel like a cheapskate. Think of it as planting a little money seed that, with care, will grow into a mighty money tree (or at least a decent nest egg).

Automate it! Set up an automatic transfer from your digital wallet or online banking account, so you don’t have to think about it each month. After a year, you’ll have 240,000 GYD saved up, and that’s just the beginning.

No bank account? No problem! You can create a consistent routine by putting cash aside in an envelope each month. While it may sound old-school, building the habit of setting aside cash is a great start. That said, I strongly recommend joining the banked community.

Having a bank account doesn’t just keep your money safe; it establishes a financial history and builds a financial identity. This is essential if you ever want access to credit or borrowing. Banks track your savings and transactions, helping you demonstrate financial responsibility, which is key to securing loans in the future. Whether it’s for a business, education, or even buying a home, a bank account can unlock doors and help you achieve your financial goals.

Step 2: Park Your Money in the Right Places

Now that you’re setting aside 20,000 GYD each month, let’s make it work. A good start is a simple savings account for an emergency fund—what I call the "Mom’s Peace of Mind Fund." Life has a way of surprising us with sick kids, flat tires, or unexpected repairs. Before diving into bigger investments, create this fund in a low-risk account. It’s a safe, easily accessible way to cover unexpected expenses.

Another great option? Mutual funds. Think of them as an easy, diversified way to invest without stressing over individual stocks or bonds. With mutual funds, your money is pooled with others and professionally managed, giving you access to a range of assets and spreading your risk. Many banks in Guyana and regional financial institutions offer mutual funds, so it’s worth exploring options that match your comfort level with risk. Personally, I recommend GBTI’s USD mutual fund, which has shown good returns as of November 2024 and requires a minimum of 25,000 GYD to start (not an ad, and please do your research as I’m not an investment pro!).

When banking your money, keep things simple. Choose funds with limited fees to maximize returns, and make sure you know exactly how to access it in an emergency. Understand all fees involved, and don’t hesitate to ask questions about your money.

Real Estate – But Think Small

Real estate sounds big and fancy, but it doesn’t have to be. My favorite way to start small? Rent out a room on Airbnb, or set up a space for a friend who’s a young teacher or yoga instructor and wants to give extra lessons. Real estate is booming, and even a few square feet can be an asset!

The government also offers subsidies for building materials, so when you’re ready, you can save on essentials like steel and cement. Start simple, fake confidence, and watch that rental income roll in.

Invest in Yourself – Courses, Classes, and Career Boosts

You’re your own best investment! Use a portion of your monthly savings to learn new skills, earn certifications, or attend workshops. Who knows? That 20,000 GYD could lead to a salary bump or even a side hustle, making saving even easier.

Step 3: Let Compounding Do the Heavy Lifting

Compounding is like magic for money. When you reinvest the returns from mutual funds, interest from savings, or dividends from stocks, your money starts earning its own money. Over time, those little gains grow into something substantial.

For example, if you invest 240,000 GYD annually with a 5% return, after ten years, you’ll have over 3 million GYD. Not bad for letting your savings work while you’re busy being awesome.

Final Thoughts

Saving is all about the long game. Whether it’s building an emergency fund, setting up a rental, or getting started with mutual funds, those monthly deposits add up faster than you think. And remember, consistency is key—automate those transfers, and let your savings grow without lifting a finger.

And here’s the best part: this logic works for any amount! Whether you can save 5,000, 10,000, or 20,000 GYD a month, sticking to a routine and saving regularly will put you on the path to financial growth. It’s not about how much you start with—it’s about showing up for your future, one deposit at a time.

With a little planning, you’ll have a financial future that’s bright.

Caveat: Serah Radhaykissoon is not an investment expert or financial advisor—just a woman who likes to share ideas and yap about money! This article is based on personal experiences and opinions, so please do your own research or consult a financial professional before making any investment decisions.