Have you got a significant disposable income? If so, it’s likely that you will be amassing a sum of money after your monthly expenses. Some people tend just to stick that money in a savings account and forget about it. But, what those folks don’t realise is that they can make their money work for them.
So, just how should you manage your wealth? If you do a quick Google search, you’ll unearth thousands of different ideas! Of course, you will want to know which suggestions will work best in your case. Here are five of the smartest ways to manage your wealth:
1. Save 20% of your monthly income into a savings account
One of the smartest ways to manage your money is to keep a fifth of your income each month. Why? The answer is simple: to have access to a “liquid” reserve of money.
Sure, investing money in things like properties is always a good idea. But, there will be times where you need access to cash at any given notice. You may not think it, but there are plenty of instant access savings accounts that pay good interest.
2. Seek out some professional advice
One of the best ways to make your money work for you is to get some guidance. I know you can follow the tips on this page. But, they are just general ideas.
There will be times where you may have particular financial needs. In those cases, you’ll need an expert to help you put your money into the best investments.
3. Don’t borrow any money unless it’s necessary
It’s almost impossible to get by in life without borrowing money at some point. For example, you’ll need someone to lend you the cash to buy a house. Sure, you could spend the next 30 years saving up for one, but where will you live in the meantime?
Some items like computers don’t need a loan or credit card to buy them. For such buys, you can save up the cash from your disposable income. By not borrowing, you save yourself having to pay interest to lenders. And you’ll have fewer bills to pay each month!
4. Start thinking about your retirement
It doesn’t matter if you are 18 or 35. Now is the time to start planning for the future and thinking about how you will fund your retirement. You might get some help from the government. But, will it be enough to let you lead the same lifestyle as today?
If the answer is no, you’ll need to start putting some money aside for the future.
5. Consider low-risk ways to grow your savings
As the old saying goes, it’s never a good idea to put all your eggs in one basket! With some of your spare cash, consider investing it in low-risk strategies.
For instance, you may wish to consider peer-to-peer lending. Or you could invest in a government-backed scheme.