Saving and investing money is a great thing to do to generate wealth so I think the Saturdays Saver Challenge is a great place to start every year. I know it's mid-month but I plan on doing a monthly add to my piggy bank with some minimum amounts. If my funds allow, I may even add some extra into my savings depending on my funds available. So the item I am looking at is HBD because we get it as part of our content creation here on HIVE when we make posts or comments. Saving a few pennies everyday is a great way to ensure there is some extra funds available.
Ways to save using HBD
There are many ways to save using HBD but some of them require converting it into HIVE so I will focus on the two ways to save using HBD directly. As of now, I see two options: Hive Savings and SWAP.HBD/SWAP.BUSD diesel pool.
HIVE Savings
The HIVE savings currently offers 12% HBD back a year and it is determined by the top witnesses. So this means you can roughly expect 1% of your savings to be returned per month. There is only a 3 day waiting period to get your funds back from the savings.
Diesel Pool
The next option is the diesel pool on Hive Engine. The diesel pool gives out a certain amount of BXT daily to liquidity providers in this pool and I did add in some funds back when the APR was much higher due to increased distribution of BXT (first few weeks gave out bonus BXT).
Saturday Saver's Plan and my choice
Saturday Saver Challenge
Last year, I was unconfident about saving and I did increments of 0.001 HBD but this year I plan to do a penny a day and increase that by a penny each day. This HBD will be deposited into my choice of savings. Either way you will be starting with a penny on the first day, 2 pennies on the 2nd day and onwards until the end of the year. My plan for adding will be on the 1st of each month to put the required amount into my savings and I can add extra to it if I want.
To sign up, just go to the Saturdays Saver post and follow the rules. If you are joining late, you can put it down on the latest post by @eddie-earner and comment there that you want to join. At the end of the year, I should of deposited at least 667.95 into my savings and it will be growing passively.
My Choice
Both of these options are attractive as the Diesel Pool offers a 19% APR and the HIVE Savings has 12% but I decided that the HIVE Savings is my preferred choice. I remember having some issues when I first added to the diesel pool and while they won't be an issue going forward, I just decided that it isn't as stable as I would like.
The current downsides of investing into the Diesel Pool comes moving HBD into Hive Engine. For this reason, you will lose 1% because the only option I found to swap between the two is to use the default Hive Engine Deposit. So you already start your position off a bit smaller and it will take more time for you to
break even on your trade. You could stake your BXT for a higher APR but I expect the pool to continue to drop over time and the APR will also drop. If you do so, you will get HIVE in your HIVE wallet everyday. I don't know if just staking what you get will maintain the APR stable enough but it started at over 100% APR and it is down to 41% now.
So the HIVE Savings pool just seems more simpler and less risky as time passes. Thus my preferred choice of saving is the HIVE Savings. I may decide to invest more into the diesel pool at a later date but I prefer to have everything a lot more simple for the purposes of the challenge.
Conclusion
Saving is a way to start generating wealth. After all my goal in the end is to be financially independent and knowing that I can generate a decent income from passive sources is one way to achieve this. It's never too late to save and time is on your side if you start saving early. I have some extra HBD but I plan on waiting for the general sale of Splinterlands to pass before deciding where it should go so I may add some extra to increase the interest I get from HIVE savings.
Do you have any saving goals? How do you hold yourself accountable and how do you plan to use the savings?
Please feel free to leave a comment if you have any questions or feedback.
