Worrying about your credit score and every penny is exhausting. When we are figuring out ways to grow our finances, we should not just look at the immediate concerns, but cast our eyes into the future. This is why long-term investments and methods of saving are invaluable. Let’s show you some of the long-term methods to help you grow money and how you can do it.
Investing and Trading
While these are two separate entities, we are specifically talking about stocks and shares. It can seem like a very foreign entity but whether it is CFD trading or different types of shares like redeemable shares, the reality of the situation is that when you are looking for a long-term investment, this is by far one of the best ways to grow your money.
Of course, it’s important to note that with any type of investment, you may not get back what you put in, but there are many people who have been able to grow their money simply by putting it away and leaving it to compound over the years. When it comes to investing, the most important rule is to invest money you won’t miss. This is why, if you are looking for a long-term investment, you need to start now by putting a very small amount away every week or month, whichever is feasible, and then you have a decent amount to invest.
If you can put away £20 per week starting this week, this time next year, you will have £1,040, which is a decent amount to get started. You could put it into a stocks and shares ISA or you can use one of the many trading platforms. Trading platforms provide more opportunities than ever to buy and sell shares. When it comes to investing you need to remember that investing in one company is riskier than investing in funds. It’s always the golden rule to diversify your portfolio.
It’s not a very sexy option, but a savings account, especially right now, has never had better interest rates. Much like investing, if you can put a tiny bit aside every week or month based on your financial situation, you can see it accumulate over time. Savings accounts will never yield the same amount of interest as something like an ISA (more of which below), but if you are looking for a long-term way to grow some money, you can benefit from finding the best high-interest savings accounts.
When it comes to savings accounts, there are ones where you can access the money instantly, but if you really want to see your money grow it’s better to have it locked into an account where you have to pay a fee if you want to access it. Likewise, ISAs are a great way to lock your money in. You need to open an ISA before you turn 40 in the UK. It is by far the best way to grow your money. This is because the government will top up your money by ⅕. For example, if you wanted to save for a house you could put £1,000 into an ISA over the course of a tax year (April to April), and the government will top it up by £1,000. You can put more money in, but £4,000 is the limit for government support.
“Hiding” It in a PayPal
This only works if you are not very technically inclined. While you can put money into savings accounts, PayPal or a different bank account is another way to essentially separate your moneys. Many people think that if it’s in their bank account, they will spend it. Therefore, putting a small amount into another savings account or your PayPal will mean you have to jump through hoops to spend it.
Make sure that your PayPal account has an impenetrable password and ensure that you don’t know the password, but keep it stored safely somewhere that nobody can access it. When you hide money like this and you are putting it aside for a future expenditure like a holiday, it’s always a nice surprise to see this money in something you almost forgot about!
There are also other savings apps like Plum that can squirrel away pennies from your bank account. We have to remember that every little helps, and it adds up over time.
You may find yourself struggling financially now, but the most important piece of advice is to put away little amounts. Little and often = long-term benefits!