If your cash is returning pitiful savings rates that are not competing with the rate of inflation, over time, your savings are likely to lose value. Which when we think of it this way, degrades all the hard work you’ve done to build your pile of cash up in the first place. Even if you aren’t particularly money orientated your savings are many things to you, and your family, it’s your;
- Lifeline for when times get rough, for instance, someone loses a job or becomes ill.
- It’s your freedom fund, to hang up your work uniform when you’ve just about had enough of your overbearing boss.
- You can use the money to afford milestones such as planning your wedding or paying for college.
- And it’s also your opportunity to live the lifestyle you see fit fund, whether to retire early or to move to the Maldives and live out your days on the beach.
Where to put your money now, affects how and when you will reach your goals and dreams, so let’s have a look at a few places you could store/invest it to make your money work for you.
High Term Deposit Accounts
The beauty of these accounts is the security that you will receive a fixed rate of return on the money you put away. Search for high term deposit rates with a trusted financial institution to give you the certainty of a return on your investment.
Stocks And Shares
We tend to fear what we don’t understand and stocks and shares, in particular, can be quite daunting. But it’s a lot simpler and has more advantages than you might think. You don’t necessarily have to leave your job and become a trader to benefit from the ever-changing markets, you can simply use a platform online or pay a fee to a stockbroker to invest your cash for you. It’s not advised to stick all of your money in this finance sector alone, as your emergency fund and pension should always be the first priority. But building a diverse portfolio can give you some additional advantages and opportunities to make more money, as opposed to just leaving your money in a low-interest savings account.
Side Hustle
The idea here is to make your money work for you by setting up a side income. This could mean investing some money into your skills and education to become a photographer by purchasing some lessons and photography equipment to launch your business. In cases such as this, sometimes we need to spend money to make money. This is an excellent way to couple investing your cash by adapting your entrepreneurial skills.
The best places to put your money beyond your easy access emergency savings and pension is into a diverse range of options that will see you a better return than just sitting in a low-interest savings account. It can be challenging to let go of your savings, and so, assess the risks of your chosen investments and to begin with start small to get a feel for the sectors you are interested in moving your money to.
