How to make your money multiply
Using some of the following methods can help improve your financial situation.
09:20 20 September 2013
There are many different ways to use savings and investments to better your financial position. One of the best gifts you can give yourself if you have money left over after expenses is a savings or a way to make that money multiply. Savings and investments are just ways to make your money go a bit further. Sometimes you might earn very little extra and other times you might earn quite a bit. In order to ensure that your funds grow to their full potential, you’ll have to decide which choice is the right one for you.
- Regular savings accounts—these are best used if you simply want to separate your funds from your cheque account. These won’t earn a lot of interest, but you will be able to keep funds in a different account to ensure that you have a savings for emergencies. There may also be different requirements among banking institutions for the process to withdraw funds. Other things to consider are possible fees, minimum balance requirements, and different interest rates.
- Independent Savings Accounts—these particular types of accounts are beneficial in that they typically provide a much better interest rate than a regular savings account. They do have a limited amount, which can be deposited annually, so if you’re looking for a place for a very large sum of money you won’t be able to put all of it into one of these accounts.
- Bonds—these have not been as popular in recent years, but the money is essentially given to a government, local authority, or company, which can use the money to invest in the stock market. The return depends on the ability to make wise investment decisions and the stability of the stock market.
- Pooled Investments—one of the most effective ways to improve your finances without carrying all the risk since your money is combined with that of other investors.