Provided you already have some savings behind you, it is well worth considering investing some of your spare cash. Saving is a good idea, especially if you can secure a good rate of interest. But, once you have enough cash put by to pay the bills for a couple of years, it is worth seeking out ways to make your cash work harder for you. Here are a few suggestions for you to investigate further.
Get help from an investment manager
One approach is to invest in a financial product from Wealthify or another similar firm. Using someone like them, it is now possible for ordinary individuals to open an investment account. Even with a relatively small amount of money. The products on offer vary from firm to firm. But, typically they offer general investment accounts and investment ISAs to people who want to start small.
Buy some bonds
Bonds can be a good way to invest. There are several types available including bond funds set up by the government.
Usually, you agree to tie up some of your cash in one of these bonds in return for a guaranteed rate of interest. Provided you leave your money in place for the number of years agreed, you can potentially get a better rate of return than if that cash was left in an ordinary bank account. Of course, you need to do your research to make sure that this is likely to be the case.
Invest in property
For many years now, property prices have continued to rise steadily in most parts of the UK. The vast majority of those who bought flats and houses ten or twenty years ago now own properties that are worth far more than they paid for them. If you think that property prices are going to continue to rise you could consider doing the same. Be sure to calculate the true cost of buying, maintaining and selling on that property, before you do so. This excellent article shows you how to do that.
Invest in your home
Carrying out home improvements is another, less obvious way to invest in property. Potentially you can make a tidy profit from doing things like building an extension, improving your garden or doing a loft conversion. Again, you will need to do some research before spending a lot of money on projects like this.
You need to identify how much it will cost to carry out the work. Then speak to local estate agents about how much value adding an extra bedroom or extension to your home will add. If the figures make sense, you can go ahead and get the work done. You have to bear in mind that if property prices drop in your area before you sell, you may not get a good return on your investment. But, at least you and your family will have enjoyed having access to more space and nicer living conditions.
Always seek professional financial advice first
It is always wise to take your time and seek independent financial advice before investing. You need to be sure that you fully understand the risks before handing over your hard-earned cash.
* Collaborative post