How to do so.
If you are wondering about how you can make your money work for you, then you have come to the right place. In the current economic climate, it makes sense that you should want to make the very most from any spare money that you have, so saving it in the right place is definitely worth it. These tips should be able to help you to make the right decisions.
- Never keep much money in your current account. If you do this, then you’re not going to be getting any interest on it. The thing that you need to do is to keep your spare money in a savings account so you will get at least a little bit from it each and every month. Even if it’s just a couple of pennies, it’s much better than nothing.
- Put your spare money into an ISA. Although you can only add a certain amount of money into this every year, it is a good thing to do as it means that you can forget about it and you know that you’re going to be able to earn some money from it. Only put it in here if you know that you’re not going to need it for anything else, as it is stuck once it is in here, and if you manage to take it out again you will not be able to add as much back into it within the same tax year.
- Consider premium bonds. If you have used up your ISA allowance and your savings account isn’t offering a huge amount of interest to you, then it might be a good idea for you to put some of your money into premium bonds. These do not increase or decrease in value, but you do get entered for prize draws which means that you are more than likely to win at least a little bit of money.
- Lend your spare cash to borrowers. Although this is what a bank does anyway, there are now a number of websites which allow for you to lend out your money at a rate that is suitable to you to borrowers who can’t/don’t want to get a loan from the bank for whatever reason. It is safe, and the money that you lend is protected by the same laws as money that might be lent through any other bank. On average, if you put £10 into this system you will make £0.08 profit each month, so if you put £1,000 into it you will make £8 profit. If you look at the rates that you’re getting on your ISA and savings accounts, it is likely to be much better, so worth a try.
- Stocks and shares. Although this is a little bit risky, it is always a good thing to try if you have money which is spare to the extent that it really doesn’t matter whether you lose it or not. Many people have become rich by using the stock market. It is partly luck, but if you do hit lucky then it is certainly something that is very worth it indeed.
Published in: Personal Finance