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Where should I put my savings?
Whether you want to buy a home, start a business, get out of debt, or save for retirement, there are so many reasons to save money. If you’ve been saving your cash each month and you’re now looking for a worthwhile place to keep your hard-earned savings, it’s a good idea to consider a few different options. To help give you a better idea, here are a few of the best places to put your savings to achieve better financial independence and meet your financial goals more quickly and effectively.
Investing in property is one of the best and most popular ways to utilise your savings. When you invest in a buy to let property, you benefit from a regular return on investment through monthly tenant rent payments. Then, if you choose to sell your property further down the line, you could find that the property has increased in value due to capital appreciation. If you’ve saved a large enough amount and want to significantly boost your income and savings, property investment is definitely something to consider.
Before going ahead with any property investment, be sure to spend enough time researching the property market and choosing the best opportunity for you. This means looking into the UK areas that offer the best potential for buy to let investors, such as Liverpool and Manchester. These north-west cities have gained a reputation as property investment hotspots in recent years, with some of the most attractive rental yields and fantastic potential for capital growth due to the thriving economy of each city. If you’re working with a property investment company, make sure you also research a range of potential companies before finding the right one. Qualities to look out for include positive reviews, a strong online presence, and investment properties in prime areas of the UK. Liverpool and London based property company, rw-invest.com, have a proven track record for excellent customer service and offer properties in the north-west with rental yields reaching as high as 7 or 8%.
If you don’t want to invest in property in the UK, another way to invest is to reserve at Prime Condos.
An Individual Savings Account, otherwise known as an ISA, is another popular choice for those looking to make the most of their savings. ISA’s provide a tax-free method of gaining interest on the savings you put into your account, helping users meet their financial goals more quickly and easily.
There are different ISA’s available depending on what you want to use your savings for, including a ‘Help To Buy ISA’ which helps people save for their first home or a ‘Lifetime ISA’ which is used to save for retirement. For more short-term savings goals, a cash ISA is often the best option. As with anything that concerns your money, make sure you look around for the best ISA to help you achieve your long or short-term goals.
A rainy day fund
Along with methods that help you gain interest or returns on your savings, it’s also important to keep a sum of your savings away in an emergency fund. Unexpected events like losing your job can occur at any time, which is why having a rainy day fund available is vital for better peace of mind.
Ideally, this savings account will contain enough money to cover expenses such as rent, food and other bills for at least three months, but whatever amount you can afford is still helpful. See this great post for 10 ways to invest your day to day savings.