Do you ever wonder what the right thing to do is? Should you be making sure that you’re enjoying your money while you’re young, or should you live frugally now for financial security later? There is a wide range of things you could be doing with your money that may make a difference to your life both today and tomorrow. You might simply be looking to become debt free, or perhaps just save for a once-in-a-lifetime vacation. The choice is always yours, and it’s best to consider your personal circumstances before making any big decision.
Before you can choose the right investments for you, make sure you have an effective budget in place. When you know what your total income is and what your total outgoings are, you can make sure your leftover cash is going to the right places. After all, debts should be cleared before considering big savings. This is because they usually incur more interest charges than you can earn. After clearing any financial obligations, why not have a closer look at some of these financial investments:
You may think that saving for a pension will only be a benefit for you when you are much older. And if you’re very young right now you might even worry you’ll be too old to enjoy a pension by the time you get there! On the contrary – by investing in your retirement today, you can bring the date you wish to enjoy it forward. The younger you start saving, the earlier you can enjoy it because the pot you draw from will be bigger.
Most of us have access to our employer contributed pension scheme. You can also invest in other savings and schemes that can provide an income after work. Look into things like the infinite banking concept that high-premium, dividend-paying, whole life insurance policies might provide for you. The basic idea of becoming your own banker is that you’re borrowing from yourself against a policy designed to pay out upon your death. So yes, you’re saving for that moment way in the future, but you could be using it to your benefit today.
There are so many different savings accounts to choose from these days. Some are government subsidized, and others are tax-free. These are the ones to investigate a little more. There are so many things in life that you might need to save up for. The higher the interest rate you can earn, the better the growth of the cash you put away. This might be for a new fridge, a new car, or even your wedding. If it’s there waiting for you, there will be no debts to pay, and you’ll have a better idea of the budget you can afford.
Of course, those savings might remain untouched, growing year on year. Eventually, you might choose to retire early, and use those savings as your income for a few years. Or you might use it for a wonderful vacation. Perhaps you’ll treat all the family to a special occasion? Don’t forget, as we age we have increased healthcare needs. Regardless of all the exercise and healthy diets you’ve stuck to, some of these needs can’t be avoided or predicted. A good savings pot can help you become more comfortable over time.
Property has been an investment favorite for hundreds of years. Of course, we all need a roof over our heads, so your property investment might be a family home. Look to buy a house that is right for your family, but that is deemed a good investment too. Pick a block that is due to benefit from regeneration, or that is becoming more desirable to live on. Choose a property you can renovate so that it will be worth more money after the works.
Your property may eventually be sold to fund your retirement home. The more you can afford today, the more you should get back from your home for your future. Are you looking to live out your years at the same property? Consider how you can make that more practical for your needs and for your financial stability in years to come.
Stocks and Shares
This is perhaps the most common place to try to invest. Many people use their stocks and shares to provide a profit within just a few months or years of their initial investment. Others will sit on their investments for the longer term. They can then be sold for a lump sum that can be used to fund a big purchase or a few years of your retirement. Obviously, it can be very difficult to accurately predict what will happen to the value of your investment. Speak to your financial advisor if you’re looking for something safe that could serve you well for the long term future.
Education is an investment in you that can easily be turned into a financial reward. Most companies are looking for employees that have a degree just to start at the entry level. You will soon work your way up the career ladder. Continued investment in education, training, and specialist knowledge might benefit your income. You may be eligible for more promotions, more pay and more benefits. These benefits could likely include your pension. It is an investment in your continued professional development and education. And it could serve you financially now, as well as in the future.
Saving up for a child’s education, or for further training for yourself is certainly worthwhile. Think about the lifetime return on that investment. Yes, the very best colleges are very expensive, but they could open the doors to better employment opportunities later on. Eventually, you might find educating others to be a worthy way of earning a little income. Few retirees want to step away from work related activities completely. You might be able to take on a class or two and continue to earn and learn.
There are so many ways to invest your money. Most investments can benefit you today as well as tomorrow. How far can you make your earnings stretch, and when will you reap the benefits?