If you’re thinking of saving money, but don’t know what you can do to get the most out of your savings, then look no further! We’ve looked at a variety of different ways to save, and explained the pros and cons of each method, so that you can get a profit from the money that you’re putting away. The days of storing money under your mattress have gone, and the days of getting more cash than you put in are here. Phew.
Investing your money by purchasing shares in a company is a great way to get money back from your savings. Each year you’ll get dividends if the business you have shares in is doing well, and if you’re clever about it (and invest in shares from a few different companies) you’re unlikely to come out with a loss, however badly one of the businesses may have done. The key here is variety, and this only really poses a risk if you put all of your money into one company that isn’t guaranteed to succeed. Research into the best options out there before you take the plunge, and look at the history of their profits.
If you’re looking to get a return on your money, but you’re willing to wait a while, a pension scheme can be a good idea. Your employer probably has one set up for you already, but putting a little more aside is a good idea if you’re looking to live a life with a bit of luxury when the time comes to retire. It may seem like this day is never going to come, but you’ll be thankful that you took a little time to focus on your future (especially when you’re going on that cruise). If you’re self-employed, there are also options for you, so have a look at solo 401k contribution limits if you think that you could be eligible.
If you want to have a bit more control over your money, and see the immediate effects of living frugally, then opening a savings account is a great idea. There are a variety of different options out there, and it can be quite overwhelming when you see all of the choices, and the financial jargon that goes with them. But decide whether you want to have limited access to your account (and a higher interest rate and return) or whether you may need access to it at any time. If you keep it in the bank for 5 years or over, you’ll see a higher profit, but don’t cut yourself short if you think that you may actually need to access it before then.
So, there are many ways to get a profit back from your savings, and investment, pension schemes, and savings accounts are the most popular. Whilst you have to be careful with all of them (pension ages can change without warning, investment doesn’t always come with a profit, and you may not be able to access your savings for a few years) they’re all worth considering if you want to get the most back from your money. Happy saving!