At what age do you start to worry about money? We all know someone who is approaching their thirties and still hasn’t started to take money seriously. They spend anything extra that they make on holidays, cars, tech and other luxury items that all have one thing in common. They don’t have long lasting value. Sure, holidays will give you some great memories and thrilling experiences, while cars are super fun to roam around in. But at the end of the holiday, the money is gone, and you’re back at work. As for that supercar, nothing that you own is depreciating fast in value.
Once you’re making a decent amount of money each year and you’ve found a good job, you should start to think about growing your finances rather than spending them. There are a few reasons for this, But the main idea is that you can help cover yourself for the future. This is why most experts agree that you should be saving around a quarter of your paycheck each month. But saving isn’t enough because you also need to invest. Only then, can you actually grow your capital? But what type of investments should you be looking at here? Ah, i’m so glad you asked.
Savers Accounts: Avoid
You might think that the best and easiest way to invest your money is a savers account. It’s not a bad idea by any means but don’t expect miracles. You certainly can’t rely on this as your primary form of investment. It’s become all too common these days for savers to get very little from these accounts. In fact, you’re more likely to get a letter through the post telling you about the interest rates dropping rather than actual money.
There are exceptions to this rule of course. There’s the home saver account where the government will add twenty-five percent at the end of the year to help you buy a home. And there are specialized accounts that either require huge amounts of capital or for you to lock your money away for extended periods of time. And either way, this probably won’t lead to you earning a fortune. So we need to think about other forms of investment instead.
Yes investing in property is one of the best ways to earn a lot of money but there are a few things you need to be aware of. First, it can’t really be considered a passive investment that you’ll be able to complete in your spare time. Particularly, if you are buying to let. Buying to let will mean that you need to take on the responsibilities of a landlord. Sure, you can make things a little easier for yourself by hiring an agent to handle most of the jobs for you. But you’ll still be expected to be around and meet your tenants.
If you are buying a let, you should definitely think about your target tenants. You have lots of options here from young families to the elderly and students. Students are probably the best possibility because they come with the handy support of a guarantor. This means if for any reason they can’t pay, someone else is legally obligated to. With buy to let student accommodation, you can also furnish fairly cheaply and get everything set up at a minimum cost to you. Remember, students aren’t looking for luxury, they just want a place to live.
Shares: Risky But Profitable
Perhaps you want to try your luck investing in shares. Again, it’s not a bad idea but it can be a little risky, so you’ll certainly want to think about how much you want to invest. If you spend too much, you could lose it all when the market takes a dive. You should also have a solid understanding of any business that you might be investing in. For instance, you might keep your ear to the ground when it comes to movies and entertainment. If that’s the case, you could buy shares in WB, Disney, and Sony. Actually, it might be best to steer clear of Sony.
Of course, these types of shares are often quite expensive, and as such, you might want to look at cheaper options. You can get penny stocks for smaller amounts of money. These aren’t named in relation to their potential profitability. Penny stocks can lead to great levels of riches, they’re just a little bit of gamble. It’s hard to tell whether you’re investing in the next Microsoft or the latest failed start up.
We hope this gives you some idea of how you can start investing your money and stop wasting your time.