Is it time you did more with your savings? If you already have some savings set aside, then you’re already doing something right. However, many of us could be getting more out of our savings by putting them in the right place and spending them in the right way. This post explains more on how to get more out of your savings.
Have you got a clear savings goal?
It’s important to have a savings goal when setting aside savings - otherwise you’ll be tempted to dip into your savings for all kinds of purposes. You could try saving up for your first home, travel, new furniture, a wedding or even a business venture. To keep your goals focused, consider setting up different accounts for each goal.
When it comes to savings for emergencies, make sure that you have a clear definition of what is classed as an emergency. Car repairs, home repairs and medical bills are all suitable emergencies. Buying a last-minute dress for a night out is not an emergency.
Are you getting the best interest rates?
The best place to put savings is in a savings account. Unlike a piggy bank or a jar, you’ll make interest on your savings by placing it in a bank.
Sadly, interest rates aren’t great at the moment. Some banks have been steadily reducing interest rates. This is why it’s important to constantly shop around in order to make sure that your money is in the best account. You can use sites like Bankrate to compare the interest rates of different savings accounts. Some savings accounts may have other perks such as even paying you to open an account.
Could you invest your savings elsewhere?
There are other places to put your money beyond savings accounts. Instruments like stocks or cryptocurrency could potentially make you a much bigger return. Of course, these investment strategies are much riskier, so you do have to be careful about where and how much you invest.
Stocks have long been a popular form of investment, however the last few years have been quite volatile for the stock market. You’re best off sticking to secure company stocks or hiring an asset management firm like M&R Capital Management to help you invest your savings.
Cryptocurrency is even more volatile. You typically have to keep a much more watchful eye on these types of investments. There are similar companies that can manage your cryptocurrency portfolio for you.
You could also explore other forms of investment. This could include putting savings into bonds, trying peer-to-peer lending, putting money into gold or even buying real estate if you already have large amounts of savings. Do your research before investing in any of these.
It’s best to not put all your savings into one instrument and to spread them out over multiple investments. Try to keep some money in savings accounts as a secure backup option - the biggest benefit of savings accounts is that they will never lose money.
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