How Can You Really Maximize Your Savings?
In order to have a full and fulfilling life, finances are always going to be a centrally important part of that. And if you want to make sure you have strong finances in your future, you need to think about saving as much as you possibly can. As it happens, this is something that might be a little easier than you think, but you will need to make sure that you are actually approaching it in the right way.
In this post, we are going to discuss what you can do to really effectively maximize your savings. As long as you have thought about at least some of the following, you should find that you are much more likely to have more savings, and therefore more security too.
Set The Intention To Save
It might sound silly, but you will actually find that you are much more likely to save a lot of money if you actively set the intention to do so. If you have been thinking loosely about perhaps saving money, but you haven’t yet found that anything has really changed for you financially, then this is probably because your intention simply wasn’t strong enough. So instead, you might want to try and ramp up the strength of your intention considerably.
If you are struggling with that, you might first need to work on boosting your motivation. The stronger your motivation is, the easier it will be to have strong intentions, and before you know it, you are going to find yourself saving a lot of money. So this is an early step that you should certainly try to take.
Seek Out The Help Of An Adviser
Most of us could benefit too from having someone to speak to about our finances, and this is again something that you might want to think about if you are keen to really make a difference in all this. Seeking out the help of an adviser is one of the best things you can do for your hope of putting away a lot of money. They will be able to advise you as to where you should put your savings, how to make the most of them, and more, and a lot of that is going to be much more specific than what you will find here.
That is because they will be working with your actual situation, rather than generalities. If you like the idea of working with an adviser, you need to first look around for one that you feel you can trust. You can look through a whole list of independent financial advisers who specialise in different fields, and hopefully find one that is suitable for you. This might be one of the best things you have ever done for yourself financially.
Find A High Yield Savings Accounts
There are so many methods for trying to make your money go further, but without a doubt one of the most effective and simplest is just to find a high yield savings account that you can pay into regularly. There are quite a few different options that you can consider here, and your circumstances will dictate which of them you might want to go for.
For instance, you can opt for an instant access cash savings account if you need to have constant access to your savings. Or if you don’t need that, you might be able to get an even higher interest rate. For instance, you might go for an account where you don’t have access to it at all, or you only have limited numbers of withdrawals per year. In those cases, you can then simply get a higher rate because you are leaving the money in there a lot more of the time.
As you can see, there are quite a lot of high yield savings accounts that you can choose from, so this is something that you might want to think about if you are going to try and save money that way.
Opt For Safe Investments
There are some ways to invest your cash which you can consider too, and which might earn you more than some of the savings accounts that are out there. For instance, you might want to consider putting some of your money into a LISA. This is a lifetime ISA account, and the whole point of it is that you get a bonus of 25% per year of whatever you pay into it, up to £5,000 per year, as long as you use that money to buy your first home or for retirement. If you use it for anything else, you will lose that bonus but still have access to the money.
On top of that, you can hope to earn anything up to around 5% (at present) interest on whatever you have in there, including the bonus amounts themselves. This is therefore a particularly safe investment type, and one that could really help you out a great deal, and it’s something you might want to consider if you’re keen on maximizing your cash.
Try Out Some Riskier Options
It is often the case, of course, that riskier investments end up bringing you more of a return, but of course with the caveat that they are less likely to pay out and more likely to cause you problems. However, if you have the bulk of your money invested in something safe, you can then simply put some extra funds into a less safe option, and over time that could mean that you end up in a situation where your money has tripled or more.
For all investments, you should be prepared to ride them out for at least five years. In the short term, it can go up or down, but the longer the money is in there, the more likely it is to earn you interest and accrue value over time.
Those are the best ways to maximize your savings right now.