The first thing that anyone should do with spare cash is to pay their credit card off without fail. The interest on a credit card can be crippling, and paying off your credit cards will limit your debt significantly by reducing the amount of money you are repaying per month. This allows you to put more towards your debts, which could reduce the time it takes for you to clear all of your debts, which could save you even more money!
Another smart idea would be to start investing any spare change that you have – pennies make pounds after all! There are many online services that will round up every purchase into fractions of pounds and then invest them into many different stocks/shares that offer significant returns within 3-5 years’ time. This is a great way to get your foot in the door with investing and can be done without having to break the bank. Contact Prio Wealth Management for expert advice!
If you are not one for investments, then consider putting your spare cash into a high yield savings account that offers better interest rates than your standard bank account. The best part about this is that many of these accounts do not require any signup fees or minimum deposits, so anyone can take advantage of them! This is a great way to save money over time and will allow you to have a nice cushion in case of emergencies.
Another idea would be to split the cash between a high yield savings account and a money market fund that will allow you to earn rewards from using your debit card. This is one of those rare opportunities where you can actually make money from spending! If you do not want to use either of these options, then putting your money into an ISA (Individual Savings Account) will allow you to take advantage of the tax-free interest rates without having to pay any tax on it – what’s not to love?
However, if all this talk about saving has made you feel a little blue, perhaps investing in something fun like art or a holiday would be a better idea for your spare cash. While these are certainly expensive than the other ideas mentioned, they can provide a lot of enjoyment and long-term value. Plus, it is always nice to have something to look forward to!
Another idea would be to invest in real estate. This is a smart option because you can build equity in the property which will add up with time, and rent from tenants can also help pay your mortgage every month. This allows you to ‘set and forget’ so when it comes to selling, and you have made a significant return on your initial investment.
Cryptocurrencies are all the rage right now, and for a good reason! They offer a high potential return on investment, and many people believe that they are the future of digital transactions. If you are feeling risky, then this could be a great option for you! Just make sure you do your research first!
In short, there are many different things that you can do with your spare cash in order to make the most out of it. Paying off your debts should be your number one priority, but after that, it is up to you how you want to spend your money! Just make sure that you are smart about it and do not overspend!