If you’ve managed to save a little bit of money, you’ve got every right to feel a bit smug. So many people are struggling with debts or living hand to mouth that it can be impossible to save. The cost of living is higher than ever, with prices rising all of the time and the average family spending up to $600 a month on food. For some, this can be half of their take-home pay. So, if you’ve got a little money put aside, well done.
However, you can do more than just have savings. You can make your money make money. Make your savings work for you, so that small amount you’ve managed to save for a rainy day starts growing into something more meaningful. An amount that you could do something big with, or to just give you the peace of mind that you have it if you need it. Here are some great ways to make your money work for you.
Investing can be one of the best ways to make your money work, and the more you invest, the more you can make. While it’s true that there is always a risk with buying stocks and shares, if you do plenty of research, learn about the market and use tools such as the TD Ameritrade robo advisor, there’s no reason why you can’t do well.
For a few years, there was very little point in moving your money. Even so-called high-interest accounts offered pitifully low rates. However, now the interest rates have improved significantly, the easiest way to make your money work for you is by moving your savings into a high-interest account.
Use an online comparison site to find the best rates for your situation, remembering that for some accounts, you could get a bonus payout if you don’t withdraw any money for a set period.
If you’ve got a large amount of money saved up, a property can be an excellent investment. Either buying a house, making improvements and selling it on or buying it to rent it out can make you a lot of money. You will, however, need to look into things like landlord’s insurance and tax and take in to account the cost of any improvements and maintenance.
Pay Off Debts
It can be tempting to leave your debts and focus on saving money. Having savings makes us feel good, safe and comfortable. But, if you’ve got debts, you are paying out money, unnecessarily every month. Use some of your savings to pay off your debts to maximize your disposable income.
Start a Business
If you’ve got some start-up cash and an idea, starting your own business can be an excellent thing to do with your money. However, it could be a while before you start to see profits and it will take a lot of time and hard work to grow. So, don’t use all of your money if you need it for other things and budget carefully to see what you can afford.