If you have built up your savings over the years, it’s a good idea to evaluate where you stand every now and again. Ask yourself if your money is working hard enough for you, and think about whether you get a bigger return by putting those savings elsewhere. Squirreling your spare cash into a basic savings account may seem safe, but if you want to grow your money, it’s wise to investigate other options. Here are several things to think about.
Before you begin
First of all, there are very few investment opportunities that will make more money than the interest on expensive debts. So, before you start, ensure that all of your debts are on low-interest rates and identify anything that is costing you more than you make from your savings. A good example is the credit card. You might have been attracted by a zero interest account, but once that term is up, you may be charged anything up to 20% per year. Not many investments will get you that back in just twelve months – so make sure you pay off your bad debts before you do anything else.
Pay off your mortgage
Mortgage payments are one of the largest payments you will make each month. So, the quicker you pay it off, the more savings you will have Just think about all the spare cash that will be available to you without those high monthly payments. Not only that, but you will have complete ownership of your own home, and there is no danger of it being taken by the banks if you hit financial difficulty. And, as the years go by, you will benefit from the rise in house prices.
Invest in another property
Investing in another property can be a valuable addition to your savings portfolio. Whether you rent it out as a holiday home or use it as a buy to let, it can actually make you money as well as being a safe earner for savings. Industry experts at http://www.directpropertynetwork.com.au/brisbane offer a few tips. Firstly, look into areas that are up and coming – the arrival of coffee shops in rundown areas is often a good sign. Also, if you are renting out to tenants, make sure that the rental market is strong enough to pay for your mortgage and costs of being a landlord. Although one extra property is unlikely to make you much in the short-term, you can increase your profits by expanding into more properties.
Build a strong portfolio
As every successful investor will tell you, it’s important not to put all of your eggs into the same basket. So although investing in property is a great idea, it’s important to reduce your risk by looking into other areas, too. Look into government bonds as well as stocks and shares. When it comes to buying stock in companies, be sure to spread your investments across different industries. This will help you reduce the risk of a particular industry being hit by a disaster.
If you have any more tips on how to make the most out of your savings, please let us know in the comments below. We’d love to hear from you!