With the troubled economy, more and more people are trying to cut back on their costs and find ways to make more money. Sure, you could skip the morning cup of Joe from that expensive chain, walk to work instead of drive, or even sell your HTC Desire and other unwanted items to gain some extra cash.
These are all great ways to save a little bit of money, but to truly save and make money, you have to invest it. Even if you haven’t been significantly affected by the financial crisis, you may still want to consider ways to build financial stability and security.
There are several ways in which you can invest your money, but before choosing one or multiple, make sure you do your homework seek the appropriate consultation.
ISAs
Individual savings accounts are available to all United Kingdom residents and Crown employees. This tax-free savings account is one of the easiest and least risky ways to save money because they are designed to give you back all of the interest you earn on your investment. When choosing an ISA, shop around for the best deal and always consider moving your ISA when a better offer comes along. Also, try to invest early in the tax year. The longer your interest accrues, the more money you will make.
There are two types of accounts: Cash ISAs and Stocks and Shares. Those who are 16 and older are eligible for cash ISAs. With the Stocks and Shares ISAs the capital growth is tax-free. Those who opt for this type of ISA must be at least 18-years-old.
Shares
Shares allow you to buy a stake in a company. The value of a share depends on how well or poor your desired company performs. As a result, you can gain or lose money. The dividends from shares can vary, but if you invest smartly, you can receive a descent amount.
Corporate Bonds
The corporate bond market is still attractive. With bonds, you are able to own part of the credit of a company. These bonds tend to offer a consistent yearly interest rate. If you hold onto the bond until it matures, you will get your capital back. Similarly to stocks and shares, it is imperative that you research the company thoroughly to assess its longevity and potential growth.
Property
Savvy investors know that there is always great value in property. Even during a rocky economy you can hold onto the property and wait until the market improves. Another great way to make use of your purchase is to rent it out. Not only will you make money off of the home in the long-run, but you will be able to receive a steady income.