As you accrue wealth over time and enhance your savings, you might start to wonder what you can do with that money rather than leave it sitting in your savings or current account. Leaving it in a standard savings account is not always beneficial as the interest rates on these accounts rarely surpass inflation rates, meaning that you’re likely still losing money in the long run, albeit a bit slower than leaving it in a standard bank account. There are plenty of investment opportunities available today that you can pursue, and to help you decide on some things you can do with your savings, we’ve put together a few helpful suggestions.
Stocks And Shares
When we think about investing, we’re more often drawn to buying and selling stocks and shares on global marketplaces. Today that is far more accessible to everyone than it ever has been. You don’t need to be a trader on Wall Street shouting over a cacophony of other stressed and hectic traders to get involved in this. Many online trading platforms available today can allow you to get involved in this quickly and easily. Plenty of resources are available to help you understand the whole process.
Investment ISAs
Another popular choice, especially for those not interested in continuously monitoring their trades, is to invest in Individual Savings Accounts (ISAs). These are a much simpler way to invest, and you also won’t have to pay capital gains tax on ISA investments up to £20,000, which is the current allowance. There are a few different types of ISAs, including Stocks and Shares ISAs, which will encompass a number of different companies that your money will be invested in; Lifetime ISAs which are for enforced long-term savings that the government also bolsters; and simple Cash ISAs which simply allow you to earn tax-free interest on your savings.
Real Estate
Investing in property is one of the best things you can do with your money. Buying and selling properties is a great way to make a healthy profit, especially if you are investing money into its renovation, for example. If this is something you’d be interested in pursuing in a more professional manner, you could also look into studying real estate economics. This will provide you with a better understanding of the buying and selling process and the intricacies of the law surrounding real estate. It will also help you to identify the optimal methods of investing in real estate to help assist you in maximising your profits.
Investment Trusts
There are quite a few benefits to this final suggestion, including consistent income from said investment and the ability to leave your investment alone as a long-term strategy. An investment trust is where your money is essentially pooled together alongside the investments of a number of other individuals and is managed by a professional team. This team will use this pooled investment to buy a curated portfolio of different investments spanning many different companies and industries. This is generally seen as a fairly stable and low-risk investment opportunity as you won’t be relying on the success of just a few companies.
Of course, it is important to remember that, as with all investing, your capital is at risk. Yet this risk will vary depending on the type of investment you pursue. Either way, you should avoid investing anything you cannot afford to lose so that you don’t find yourself in financial trouble.
