Tuesday, September 8th, 2020
If you have a plan to save money and boost your savings goals in the most effective way possible, it’s wise to be aware of the multiple options available to you to help you turn your savings into even more financial security.
Making the right choice is a personal one but to help you make it, it’s important to know the potential pros and cons.
Great decisions are made with a solid foundation of quality research and by educating yourself, and connecting to professional financial advice, you can help take control of your financial future in a way that is both positive and sustainable.
Leaving money in the bank will only attract a relatively low interest rate but taking a chance on the share market (with the right advice, of course) can open you up to the potential to recoup a higher return on your initial investment amount.
Most experienced financial investment specialists recommend diversification and if your ethics are important, then you can hand-pick shares to suit your values and global concerns (environmentally-aware investments are becoming increasingly popular).
The real estate market always rises and falls and, in times of global economic crisis, it generally takes a hit. But history will show that what goes down does, eventually, come back up, so any decision to invest in the property market is best done with a long-term vision, rather than an expectation of fast-track success.
By connecting with trusted property professionals, you can improve your knowledge of the ebbs and flows of the property market – knowledge that could inspire you to invest in specific types of properties in geographic locations you may not have previously considered. By exploring commercial real estate versus residential real estate, as well as apartments versus houses and even the choice between regional centres and bigger cities, you have the potential to make smart property investment decisions that can deliver profitable returns.
Cash savings offer minimal growth – but are also unaffected by the vagaries of the share market and property sector. Choose term deposits that reward you for leaving money in accounts, with no withdrawals, and you can, at least, enjoy slow and steady growth over time, without worries about major fluctuations that can see your principal amount decrease.
This type of savings strategy requires patience and long-term vision. It comes with obvious tax-minimisation benefits and does offer some peace of mind that your retirement years will see you enjoy a safety net of financial security. Of course, just how stable that future securely is depends on your investment choices along the way – as well as your contributions.
With a little research you can discover many different ways to save in creative and potentially profitable ways. Investing in business start-ups is one option available to potentially turn your savings into more savings – but it can also attract huge losses. Your circumstances dictate your risk profile and if you do have money to spare and enjoy considered speculation, this may be another option for you to pursue as a way of saving more money. But be sure go in to it with your eyes wide open and a tough skin. It’s not for the faint-hearted who can’t afford to take chances with their future financial wellbeing.
For more information about how to save money, talk to one of our mortgage broking experts at Loans Actually about how to secure the best possible interest rate for your home loan.